Superstore in talks to take full control of Sainsbury’s Bank
In a brief announcement to the stock market, Sainsbury’s told investors that talks were underway, in response to fierce media speculation the state-backed lender was ready to relinquish control of Sainsbury’s Bank, which was set up in 1997.
Lloyds is also rumoured to be on the cusp of a sale of its fund management business, Scottish Widows Investment Partnership (Swip). For some time the bank has been keen to slim down its balance sheet by disposing of its non-core assets.
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Hide AdIt is not known how much a deal between Lloyds and Sainsbury’s could be worth, however in its short statement to shareholders Sainsbury’s said it could confirm “advanced negotiations” were underway.
Sainsbury’s was the first major British supermarket to open a bank, commencing trading through the joint venture, in February 1997.
A Sainsbury’s buyout of Lloyds’ stake would mirror grocery market leader Tesco’s acquisition of RBS’s stake in Tesco Personal Finance five years ago.
Separately, Marks & Spencer (M&S) last year announced the launch of M&S Bank in partnership with HSBC.
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Hide AdThe retailer, which offered financial services under the guise of M&S Money for several years, revealed plans to open a total of 50 in-store bank branches by the end of this year.
M&S Money was acquired by HSBC in 2004 but is run as a joint venture with M&S.
It follows increasing moves by supermarket brands to try to tap into consumer disillusionment with the traditional high street banks.
Sainsbury’s is scheduled to publish 2012-13 results today.