Supermarket giant Sainsbury’s is on the verge of buying out Lloyds Banking Group‘s 50% stake in its financial services arm Sainsbury’s Bank.
Sainsbury’s Bank was set up as a joint venture between the two companies in 1997, and earned Sainsbury’s around £25 million in pre-tax profits for its half of the business last year.
Sainsbury’s said: ‘J Sainsbury’s notes the press speculation concerning Sainsbury’s Bank and confirms it is in advanced negotiations with Lloyds Banking Group to take full ownership of Sainsbury’s Bank.’
Sainsbury’s move to buy out Lloyds mirrors Tesco’s purchase of Royal Bank of Scotland’s stake in Tesco Personal Finance five years ago. Following the acquisition it renamed it Tesco Bank.
The post Sainsbury’s in talks to buy Lloyds bank appeared first on Payments Cards & Mobile.
