Nationwide Acquires Virgin Money, Shares Delisted in London
- Nationwide has acquired Virgin Money for £2.9 billion, leading to the cancellation of its shares on the London Stock Exchange.
- The merger will create a combined banking group with approximately 24.5 million customers and nearly 700 branches, with the Virgin Money brand set to disappear in four to six years.
- This acquisition strengthens Nationwide's position as a mutual organization, allowing it to retain profits for customer benefit.
In the UK, Nationwide has successfully completed its £2.9 billion acquisition of Virgin Money, marking a significant consolidation in the banking sector. Following the acquisition, Virgin Money's shares have been removed from the London Stock Exchange, transitioning the bank into private ownership. This merger will create a combined entity with approximately 24.5 million customers and nearly 700 branches, although the integration process is expected to take several years. The merger was approved by a judge after 90% of Virgin Money's shareholders voted in favor of the deal. As a building society, Nationwide was not obligated to seek approval from its members, which led to some criticism and a campaign from a small group of members advocating for a vote. The integration will see the Virgin Money brand phased out over the next four to six years, with all profits from Virgin Money being retained for the benefit of customers. This acquisition is notable as it will introduce a full-service business bank within a large mutual structure for the first time in the UK. Debbie Crosbie, Nationwide's chief executive, emphasized that this merger strengthens Nationwide's position as a mutual organization, enhancing its ability to provide competitive services and customer satisfaction. The deal also represents a significant financial gain for Sir Richard Branson, who retains a 14.5% stake in Virgin Money, potentially netting over £400 million from the sale.