Nationwide to finalize £2.9bn Virgin Money acquisition next month

Nationwide's acquisition of Virgin Money, valued at £2.9 billion, is set to finalize next month following approvals from key financial regulators in the UK. The Financial Conduct Authority and the Bank of England's Prudential Regulation Authority have both given their consent, allowing the deal to progress after it was initially agreed upon in March. The acquisition involves a share offer of 220p for Virgin Money, which includes a planned dividend payout of 2p per share. This merger will unite two of Britain's largest retail lenders, specifically the fifth and sixth largest, resulting in a combined entity that will serve approximately 24.5 million customers. The workforce will exceed 25,000 employees, and the network will consist of nearly 700 branches across the UK. However, the Virgin Money brand is expected to be phased out, with plans to rebrand it as Nationwide within six years, although both brands will operate simultaneously in the interim. The deal has already received clearance from the Competition and Markets Authority, which is a significant step in the regulatory process. A court hearing is scheduled for September 27 to provide the final sanction needed for the takeover to proceed. If all goes as planned, the formal completion of the acquisition is anticipated on October 1. This acquisition marks a significant consolidation in the UK banking sector, reflecting ongoing trends of mergers and acquisitions aimed at enhancing competitiveness and operational efficiency among financial institutions. The move is expected to reshape the landscape of retail banking in the UK, impacting customers and employees alike.