Nationwide Building Society has reached an agreement to acquire high street bank Virgin Money in a transaction valued at approximately £2.9 billion, as announced by both entities.
Under the terms of the agreement, Virgin Money shareholders will receive 220p for each share they hold, marking a 38pc increase over the bank’s closing share price on Wednesday.
Nationwide Building Society has affirmed its strong dedication to the building society model through its acquisition of Virgin Money, which is the UK’s sixth-largest lender. This merger will result in a combined entity boasting total assets of around £366.3 billion.
Nationwide, the largest building society in the UK, reiterated its commitment to maintaining its status as a modern mutual organization.
Nationwide to take over Virgin Money in £2.9bn deal. Virgin Money shareholders will be paid 220p per share under the deal
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The organization’s leadership highlighted that incorporating Virgin Money’s £9 billion in existing business lending and its ‘Business Current Account’ would significantly enhance Nationwide’s business banking services and diversify its funding sources.
Nationwide’s chairman, Kevin Parry, stated that merging with Virgin Money would expedite Nationwide’s strategic goals, forming a more robust and varied modern mutual. He emphasized that the merger would not only increase Nationwide’s size and financial solidity but also strengthen its capacity to continue delivering Fairer Share Payments to eligible members and offer mortgage and savings rates that are generally more favourable than the market average.
David Bennett, the chairman of Virgin Money UK, remarked that the acquisition delivers “attractive value for our shareholders.”
