Britain’s Tesco to explore sale of banking unit

Britain’s biggest retailer Tesco Plc (TSCO.L) is planning to review its presence in the UK banking sector in a move that could lead to a sale of its banking arm, Sky News reported on Saturday.

The supermarket chain operator is lining up Goldman Sachs to advise on the future of Tesco Bank, the report said.

The review was at a very preliminary stage and may not lead to a formal sale process, the report quoted sources as saying.

A partial sale or joint venture could also be an option for the retailer, the report added, quoting one source.

Goldman Sachs did not respond to a Reuters request for comment outside office hours. Tesco declined to comment.

“There is no suggestion that the review of the business could result in any form of wind-down or job losses,” Sky News report said.

Tesco Bank, which was founded in 1997, has more than five million customers across its banking and insurance business, according to the data available on its website.

The bank had divested its British residential mortgage portfolio in 2019 to Lloyds Banking Group in a $4.5 billion deal.