HSBC has joined the ranks of other high-profile banking institutions as the owner of Tesco initiates a fresh offer to sell the company.
As per the experts, HSBC has initiated talks with Tesco Bank, which has a workforce of more than 3,500 and roughly five million customers.
Although it is still unclear the level of HSBC’s interest in the bank on Tuesday since there are rumors of rival UK banks like Barclays and Lloyds Banking Group submitting their offers.
In February last year, Tesco Bank was exploring the possibility of selling off its banking operations.
As per sources inside the banking industry, it was stated that the main UK bank involved in the merger could firmly establish the positions of the major high-street bankers 15 years after the financial crisis, thus it is unlikely to face any resistance from competition regulators.
The Co-operative Bank confirmed last month that it had initiated exclusive talks about selling the Coventry Building Society, signaling the start of a wave of consolidation among mid-sized British banks.
Amidst differences over valuation, Metro Bank canceled negotiations with Barclays regarding the sale of a £3 billion mortgage book.
In 2019, Tesco Bank announced its intention to exit the UK mortgage market and sold its current mortgage book to Lloyds Banking Group for a £3.8 billion cash consideration.
Credit cards, savings accounts, and pet insurance are just a few of the things it offers.
The Tesco Bank brand is unlikely to be involved in any transactions, as the business is owned by the grocery chain, which enjoys a license to use the name.
15 years after paying £950 million to purchase the 50% share in their joint venture, Tesco Personal Finance, from the then-crisis-ridden Royal Bank of Scotland, the retailer is keen on leaving the banking industry.
J Sainsbury, a rival, had also explored the possibilities of disposing of its banking arm; however, in 2021, it decided to abandon discussions with potential buyers.
On Tuesday, HSBC refrained from commenting.
- Published By Team Timeswire