Tesco is close to completing a deal to buy out Royal Bank Of Scotland’s stake in their joint venture, Tesco Personal Finance.
The deal is expected to be worth £1bn and has been under negotiation since April when the bank announced that it would be putting up for sale some of it’s assets to bolster it’s balance sheet.
It will come as welcome news following the abortive efforts to offload the RBS insurance arm for £7bn, with interest waning as the economy declines. The RBS insurance business includes household names Churchill and Direct Line amongst others and attracted a lot of interest when it was decided to put the business out to auction.
However the big players have pulled out of the running, Zurich pulling out two weeks ago, leaving the only contender being the US insurance company Allstate.
RBS have always claimed that they would not be pushed into a sale for the insurance group and currently look set to shelve the idea of selling.
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