Nationwide Building Society's £2.9billion takeover of Virgin Money APPROVED by regulators
Nationwide's takeover of Virgin Money has been given the green light from regulators
PA/NATIONWIDE
Nationwide Building Society's £2.9billion takeover of Virgin Money has been approved by the country's regulatory bodies.
In a statement, the banks announced the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) have given their requisite consent to proposed cash acquisition which would see Nationwide's branch portfolio exceed 600.
Earlier this year, the building society confirmed at it had agreed to acquire the entire issued and to be issued share capital of Virgin Money for a purchase price of approximately £2.9billion.
Despite today's news, the acquisition will not require any immediate changes to Virgin Money's business.
The PRA has confirmed that it plans to put into effect sub-consolidated prudential requirements to Virgin Money until December 31, 2028.
Both banks shared that they intend to "simplify and align capital structures" over the years as part of a wider integration process.
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Both banking institutions are set to become one
PAWith the acquisition's approval, Nationwide announced the appointment of Muir Mathieson as its chief financial officer and executive director, effective from today
Furthermore, Chris Rhodes is stepping down from the Nationwide board with immediate effect and will spend the period until Completion preparing to become the chief executive Officer of Virgin Money.
Even with the approval of regulators, the deal still has to have a Court Hearing to sanction the scheme which will take place on September 27.
If no others arise, the acquisition is expected to become effective from October 1.
Over the last year, the £2.9billion takeover have faced multiple hurdles outside of the UK's regulators.
A petition collected signatures from the Nationwide members calling for its 16 million members to be given a say on the deaal.
Campaign head Mikael Armstrong slammed the building society of pushing the deal through without consulting its customers.
Speaking to The Standard, he explained: "I started the petition to give Nationwide members a say on the proposed takeover of Virgin Money,
"At various stages along the way, I have been gagged or ignored - just like other Nationwide members.”
Despite this opposition, Nationwide has claimed members will benefit from Virgin Money being part of the business.
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Nationwide claims members will benefit from the deal
GETTY/NATIONWIDEA spokesperson previously said: "This means we will be able to provide a greater level of member financial benefits and incentives, including through better savings and mortgage rates compared to the market average."
The planned takeover will bring together Britain’s fifth and sixth largest retail lenders, creating a combined group with around 24.5 million customers, more than 25,000 staff and nearly 700 branches.
However, the takeover will ultimately spell the end of the Virgin Money brand, with the building society planning to rebrand the Virgin Money business as Nationwide within six years, although it will keep the two brands initially.