UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
November
01, 2024
Barclays PLC
(Name
of Registrant)
1 Churchill Place
London E14 5HP
England
(Address
of Principal Executive Office)
Indicate
by check mark whether the registrant files or will file annual
reports
under
cover of Form 20-F or Form 40-F.
Form
20-F x Form 40-F
This
Report on Form 6-K is filed by Barclays PLC.
This
Report comprises:
Information
given to The London Stock Exchange and furnished pursuant
to
General
Instruction B to the General Instructions to Form 6-K.
EXHIBIT
INDEX
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Exhibit
No. 1
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Completion
of acquisition of Tesco Bank dated 01 November 2024
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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BARCLAYS
PLC
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(Registrant)
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Date:
November 01, 2024
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By: /s/
Garth Wright
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Garth
Wright
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Assistant
Secretary
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Exhibit
No. 1
1 November 2024
Barclays PLC
Completion of the acquisition of Tesco's retail banking business
and commencement of long-term strategic partnership with
Tesco
Barclays PLC ("Barclays") today announces that, further to the
announcement on 9 February 2024, Barclays Bank UK PLC ("Barclays
UK") has successfully completed the acquisition of the retail
banking business of Tesco Personal Finance plc ("TPF", operating
using the trading name "Tesco Bank"). The acquired business
includes credit cards, unsecured personal loans, deposits and the
operating infrastructure which, following completion of the
acquisition, will continue to be operated under the ownership and
management of Barclays UK.
In conjunction with completion of the acquisition, Barclays UK has
entered into a long-term, exclusive strategic partnership with
Tesco Stores Limited for an initial period of 10 years to market
and distribute credit cards, unsecured personal loans and deposits
using the Tesco brand, as well as explore other opportunities to
offer financial services to Tesco customers through Tesco's
distribution channels and on the open market.
This partnership builds on Barclays UK's existing strategic
partnerships with other leading UK retail, consumer electronics and
loyalty programme brands. Following completion of the
transaction, the business will continue to operate under the "Tesco
Bank" brand, under the management of Barclays
UK.1
C.S. Venkatakrishnan, Group Chief Executive of Barclays,
commented:
"This acquisition is an important step in increasing our investment
in the UK. We look forward to collaborating with Tesco Group
on delivering Tesco-branded financial services. We are
delighted to welcome all transferring Tesco Bank employees and
customers to Barclays."
Vim Maru, Chief Executive of Barclays UK, commented:
"Today marks a significant step as we continue to grow Barclays UK.
We will bring the strength of both businesses together,
benefitting customers and colleagues. I am excited that the
combination of our brands, alongside the benefits of Clubcard and
its loyalty scheme, will support millions of households across the
UK with their financial needs."
Ken Murphy, Group Chief Executive of Tesco, commented:
"We are delighted to be working alongside Barclays to unlock even
greater value for Tesco Bank customers. Through our strategic
partnership, customers will have access to new and innovative
propositions, while continuing to enjoy the unique benefits of
Tesco Clubcard. This is a significant moment for all our
colleagues at Tesco Bank and I want to say a heartfelt thank you
for all their hard work, helping millions of loyal customers to
manage their money for more than 25 years. Their dedication
is relentless and I know that this new partnership with Barclays
will only build on their success."
The consideration payable by Barclays UK at completion was
£0.6 billion, subject to customary post-completion purchase
price adjustments. Tangible net assets of the acquired
business at completion were £1.0 billion2,
comprising, inter alia, of £4.2 billion of gross credit card
receivables and £4.2 billion of gross unsecured personal
loans, together with £6.8 billion in customer deposits.
The transaction is expected to result in the recognition of an
estimated pre-tax profit of c. £0.3 billion3 in
the fourth quarter of 2024 generating a c. 50 basis points benefit
for FY 2024 Group RoTE. The transaction has been financed
from Barclays' existing cash resources and is estimated to reduce
the Barclays Group's CET1 ratio by c. 20 basis
points4 primarily
as a result of the addition of c. £7 billion of risk weighted
assets.
Barclays UK will integrate the acquired Tesco Bank business over
time and the transaction is expected to be accretive to Group RoTE
post integration.
Notes: Figures are rounded for disclosure purposes and may not
sum.
(1)
TPF
will retain some parts of the existing "Tesco Bank" business,
related to insurance and money services (including gift cards,
travel money and ATMs), which will be rebranded over the next two
years.
(2)
Based
on estimated TPF accounting values prior to fair value accounting
(IFRS 3).
(3)
Based
on provisional asset and liability fair value estimates, purchase
price allocation estimates and resulting negative goodwill
(post-completion finalisation expected by publication of Barclays'
Full Year 2024 Results). Includes recognition of gain on
acquisition (negative goodwill) of c. £0.5 billion and
expected post-acquisition impairment charge of c. £(0.2)
billion in relation to IFRS 9 (Stage 2 balances from TPF that are
treated as Stage 1 on acquisition and subsequently reassessed)
(together "Day 1 P&L Impact").
(4)
Based
on the Barclays Group's CET1 ratio of 13.8% as at 30 September
2024. Includes Day 1 P&L Impact.
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Ends -
For further information, please contact:
Investor Relations Media
Relations
Marina Shchukina
Jon Tracey
+ 44 (0) 207 116 2526
+44 (0)
7552214868
About Barclays
Our vision is to be the UK-centred leader in global finance.
We are a diversified bank with comprehensive UK consumer, corporate
and wealth and private banking franchises, a leading investment
bank and a strong, specialist US consumer bank. Through these
five divisions, we are working together for a better financial
future for our customers, clients and communities.
For further information about Barclays, please visit our website
home.barclays
Forward-looking statements
This announcement contains forward-looking statements within the
meaning of Section 21E of the US Securities Exchange Act of 1934,
as amended, and Section 27A of the US Securities Act of 1933, as
amended, with respect to the Barclays Group. Barclays cautions
readers that no forward-looking statement is a guarantee of future
performance and that actual results or other financial condition or
performance measures could differ materially from those contained
in the forward-looking statements. Forward-looking statements can
be identified by the fact that they do not relate only to
historical or current facts. Forward-looking statements sometimes
use words such as 'may', 'will', 'seek', 'continue', 'aim',
'anticipate', 'target', 'projected', 'expect', 'estimate',
'intend', 'plan', 'goal', 'believe', 'achieve' or other words of
similar meaning. Forward-looking statements are based on the
current beliefs and expectations of Barclays' directors, officers
and employees and are subject to significant risks and
uncertainties. Actual outcomes may differ materially from those
expressed in the forward-looking statements. Factors that could
impact the Barclays Group's future financial condition and
performance are identified in Barclays PLC's filings with the US
Securities and Exchange Commission ("SEC") (including, without
limitation, Barclays PLC's Annual Report on Form 20-F for the
fiscal year ended 31 December 2023), which are available on the
SEC's website at www.sec.gov. Subject to Barclays' obligations
under the applicable laws and regulations of any relevant
jurisdiction (including, without limitation, the UK and the US), in
relation to disclosure and ongoing information, Barclays undertakes
no obligation to update publicly or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.