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| UK giant Tesco is into banking with RBS dealBritain's biggest retailer announced a major push into banking and other services with a 950 million pound deal to buy Royal Bank of Scotland.
By: Lilly Tesco is the latest sign of retailer's determination to branch out of its core British grocery market. With a market share of over 30 percent it is dominating in its domain, Tesco is a leading force in various segments such as DVDs, books and clothes. It has recently planned to expand its stores in the United States. With the latest project, it is believed that it will make annual profits of 1 billion pounds in coming few years when compared with the group's total profit before tax of 2.8 billion pounds in the year ending Feb. 23. “It says something of their ambition," said BlueOar Securities analyst Greg Lawless. The deal is a boost to Royal Bank of Scotland's (RBS) unsteady plans to sell assets to bolster its balance sheet. The RBS expects to make a 500 million pound profit on the sale of its 50 percent stake in Tesco Personal Finance (TPF). Citi analysts said Tesco was already paying 12.7 times earnings for the stake. It is above the UK banking sector average of about 7 times. The TPF was a low-risk business with a focus on savings and car insurance and no exposure to mortgages. For more information on the subject of this news, or for a sample, copy or demo, please contact webmaster or visit http://www.shakespearefinance.co.uk/ If you have any queries, please do not hesitate to contact us at: Postal Address : Parade House 135, The Parade High Street Watford Hertfordshire WD17 1NS Call Free at : 0800 097 3653 Email : info@shakespearefinance.co.uk # # # Shakespeare Finance Ltd. is authorised and regulated by the Financial Services Authority (FSA No. 441248). The loan products may not be regulated by FSA. End
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