The Global Legal Post quotes Mike Barrington on Tesco’s decision to sell its banking practice
min readTesco has announced the sale of most of its banking arm to Barclays in a deal worth up to £600m.
Barclays is taking over Tesco Bank's credit cards, loans and savings accounts and has also agreed to market Tesco-branded banking services .
Mike Barrington, Senior Associate, comments on the sale for The Global Legal Post:
“Tesco’s decision to sell its banking practice is the latest example of supermarkets divesting non-core businesses to focus on their retail offerings. We anticipate that this trend may continue.
“This particular deal envisages an ongoing relationship between Barclays and Tesco, as the bank uses the Tesco brand to sell certain products. Such agreements, designed to endure long after the transaction concludes, are crucial to get right and can be heavily negotiated to ensure the deal terms are right for both parties – the devil is often in the detail.”
Read the full piece in The Global Legal Post here.
