Tesco Sells Retail Banking Business to Barclays for £600 Million

Tesco announced on Friday that it has sold its retail banking business to Barclays for an initial amount of £600 million. Additionally, there will be an additional £100 million payment after the settlement of specific regulatory capital amounts and transaction costs.

Utilization of Sale Proceeds

The U.K. supermarket chain stated that it intends to allocate the majority of the combined £1 billion, which also encompasses a previously announced special dividend from Tesco Bank, for a share buyback.