J Sainsbury PLC has agreed to sell its ATM machines to operator NoteMachine, as the chain sharpens its focus on the retail business after offloading its main banking arm.
NoteMachine will take over the management of some 1,370 ATMs across the UK.
All the machines will stay open and in their current place, meaning people will still access the free-to-use cash service outside Sainsbury’s supermarkets and local stores.
The sale comes several months after Sainsbury’s struck a deal with NatWest Group PLC to sell the bulk of its banking business, including personal loans, credit card balances and customer deposits.
Its banking arm now consists of its commission income businesses including insurance and cash money.
Sainsbury’s had revealed earlier this year that it was winding down its banking division in order to focus on its retail business – a decision echoed by rival Tesco PLC which also offloaded most of its banking activities to Barclays PLC.
NoteMachine is set to take full ownership of the ATMs May next year.
As part of a long-term partnership, Sainsbury’s will continue to receive some commission from the income generated by the cash machines, which will be allowed to remain located across its stores.
Simon Roberts, chief executive of Sainsbury’s, said: ‘We are really pleased that we can keep offering our customers free access to cash at all of our existing locations while also simplifying our banking business and reducing our costs.
‘We’re confident that NoteMachine is the right partner for us and our customers.’
NoteMachine has one of the largest cash machine networks across the UK and is part of Brink’s Co, a Richmond, Virginia-based ATM group.
Sainsbury shares were 1.3% higher at 296.60 pence each on late Wednesday morning in London.
By Anna Wise, PA Business Reporter
Press Association: Finance
source: PA
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