Tesco is to acquire Royal Bank of Scotland’s stake in Tesco Personal Finance for £1 billion, bringing to an end a joint venture with the bank that has lasted almost a decade.

The sale will mean the grocer owns 100 per cent of the business.

Royal Bank of Scotland’s decision to sell its stake comes as it attempts to raise fresh capital in advance of launching a£12 billion rights issue this week.

An announcement regarding the sell-off will not be made until later this month, because contracts covering back-office functions still have to be agreed.

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