The UK’s largest retailer, which had been in discussions with other major lenders including HSBC and Lloyds over a deal, said all 2,800 staff at Tesco Bank would transfer to Barclays under the agreement over time.
The sale only includes its banking operations in credit cards, loans and savings.
Tesco Bank’s wider financial services interests, including insurance, gift cards and cash machines, will remain with Tesco.
