Tesco Bank to be bought by Barclays in £700m deal

Barclays is to buy the banking operations of Tesco in a deal worth £700m to the supermarket giant.

Barclays will acquire Tesco Bank's credit cards, unsecured personal loans and deposits.

In addition, the two firms have agreed a partnership, initially for 10 years, under which Barclays will market Tesco-branded banking services.

Tesco said that under the deal about 2,800 of its banking staff will transfer to Barclays.

The bank said it would integrate the business into its own over time.

Tesco said that it will initially receive around £600m and a further £100m in cash "after the settlement of certain regulatory capital amounts and after transaction costs".