Balance Transfer Tesco

Kay_C

I’m a bit confused as to why Tesco is offering a 0% balance transfer to their credit cards when they will be handing over finance and credit cards to Barclays so you will have a Barclays credit card from November not Tesco?

CliveOfIndia

As I understand it, although Barclays are buying part of Tesco Bank, it'll be run as a separate entity, still under the Tesco brand.

molerat

They are moving ownership, not closing down, so why should they stop their usual business activities.  BTs overall make money from both the initial fee and those that don't pay off before the end of term.

DullGreyGuy

Kay_C said:

I’m a bit confused as to why Tesco is offering a 0% balance transfer to their credit cards when they will be handing over finance and credit cards to Barclays so you will have a Barclays credit card from November not Tesco?

Because it's still a going concern so they will continue trying to win new customers/retain existing ones etc between successfully bidding and the business being transferred. If they did stop then Barclay's will have overpaid for the business or if Barclay's pull out of the deal the business will have been devalued. 

It becomes a period of grey between the deal being done and the transfer taking effect, it almost certainly has get out clauses and until the transfer has taken legal effect the two companies are still competitors so its a fine balance between planning for the merger/transfer but not falling foul of the CMA for anti-competitive behaviour.