Barclays has completed the acquisition of the majority of Tesco’s banking operations in a deal that will allow the supermarket chain to return the proceeds of the sale to shareholders.

Tesco is to hand £700 million back to shareholders using the proceeds of a now-completed sale of its banking business to Barclays.The supermarket giant said the deal will kick off a 10-year partnership with the finance giant,

Supermarket to sell its retail banking operations to Barclays but will hold onto its existing insurance and money services activities, such as ATMs, travel money and gift cards

The supermarket chain said the deal will kick off a 10-year partnership with the bank, where Tesco branding stays on its banking products, while they are supplied by Barclays. Barclays will market and distribute credit cards,

Tesco said today that it intended to return £700m to shareholders through an incremental share buyback, as it had completed its banking operations sale to Barclays.