Nationwide has finalised its £2.9bn acquisition of Virgin Money, uniting two of the largest banking groups in the UK. Virgin Money’s shares have been removed from trading on the London Stock Exchange as part of the deal.
The merger will create a combined entity with approximately 24.5 million customers, over 25,000 employees, and nearly 700 branches. However, the integration of the two major lenders is expected to take several years.
While the Virgin Money brand will eventually disappear from UK high streets, this process won’t be immediate. Both brands will coexist for four to six years before Virgin Money is fully absorbed by Nationwide, with customers gradually transitioning.
A judge approved the acquisition last week after 90% of Virgin Money shareholders supported it in a vote held earlier this year.
The Nationwide-Virgin Money acquisition was initially announced in March 2024, with both companies agreeing to an all-cash deal valued at £2.9 billion. Upon completion, the merger will create a new entity with assets totalling approximately £366.3 billion, positioning Nationwide as the UK’s second-largest provider of mortgages and savings.
Under the terms of the agreement, Virgin Money shareholders will receive 220p per share, which includes a proposed 2p dividend per share.
Through this deal, Nationwide seeks to accelerate the growth of its products and services beyond its current organic expansion. Following the acquisition, Nationwide intends to rebrand Virgin Money under its own name within six years, although both brands will initially continue to operate.
