Tesco to accelerate expansion in financial services
Tesco today announced that it has reached an agreement with The Royal Bank of Scotland plc (RBS) to buy from RBS its 50% shareholding in Tesco Personal Finance Group Limited (TPF) for a cash consideration of £950 million.
The acquisition will enable Tesco over time to extend its financial services business from a collection of popular financial products to that of a full service retail bank offering more choice, innovation and value to customers, and better returns to shareholders.
The acquisition is part of the strategy by Tesco, Britain’s largest retailer, to grow its share in fast growing services markets including financial services, telecoms and internet/home shopping. Tesco believes such services could deliver £1 billion in profits per annum – more than double current levels of just under £400m.
Frontier (Europe) advises Tesco on a range of strategic, regulatory and financial issues.
Versión para imprimir