On the 21st March 2024, Nationwide announced that it had agreed on the terms of a recommended cash offer with Virgin Money’s Board for the Virgin Money business. Nationwide believes that the acquisition will create a financially stronger building society with returns that will deliver greater value to its members, including savings and lending rates that are, on average, better than market standards.
Should Nationwide be successful in buying Virgin Money, its ‘Branch Promise’ will also apply to Virgin Money branches, following the completion of any existing Virgin Money branch closure plans.
“This acquisition strengthens Nationwide and means we can offer more value and broader services for our current and future members. More people will experience the benefits of mutual ownership and the customer-focused approach of a building society,” said Debbie Crosbie, CEO of Nationwide.
The joint statement by the boards of Nationwide and Virgin Money confirmed that the agreed offer price is a total of 220p per Virgin Money share. Nationwide has also confirmed that its Chief Financial Officer, Chris Rhodes, will take over as CEO of Virgin Money once the acquisition is complete. Muir Mathieson, Deputy Chief Financial Officer & Treasurer at Nationwide, will replace him.
Today, the Competition & Markets Authority (CMA) announced its investigation into the merger, to decide whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002. And, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.
To assist with this assessment, the CMA invites comments on the transaction from any interested party, before the 14th June 2024, to Nationwide.VirginMoney@cma.gov.uk
Virgin Money & Nationwide don’t wish to comment.
When the terms were set out in Appendix 1 for this announcement, it was made clear that the acquisition was subject to approvals by the requisite majorities of Virgin Money Shareholders of the Scheme and the Resolutions at the Court Meeting and General Meeting respectively, the receipt of regulatory approvals from the PRA, the FCA and the CMA, and to the full terms and conditions of the Acquisition which were set out in the Scheme Document.
