Monday, December 9, 2024
English English French Spanish Italian Korean Japanese Russian Hindi Chinese (Simplified)

Nationwide Building Society has proposed to acquire Virgin Money for £2.9 billion, potentially forming one of the UK’s largest mortgage and savings providers with combined assets exceeding £366 billion.

The deal, subject to regulatory and Virgin shareholder approval, would solidify Nationwide’s position with 696 branches, the largest single-brand network in the UK after Lloyds Banking Group. Both companies emphasize benefits to customers in terms of product choice and customer service, assuring no immediate changes to existing products. Nationwide commits to retaining all its branches, while Virgin’s planned closures may proceed.

The Virgin brand will persist for six years under the takeover, after which Nationwide will discontinue paying royalties to Virgin Enterprises for its usage. Nationwide aims to maintain Virgin Money’s employee base in the near term, emphasizing a commitment to mutual ownership and fair banking practices.

Nationwide’s offer of 220p per share plus a 2p dividend represents a 38% premium over Virgin Money’s recent share price, prompting analysts to view the bid favorably. If successful, the acquisition would strengthen Nationwide’s position in the mortgage market, potentially reducing competition but offering a broader range of financial products to customers.

Existing customers need not take immediate action, as both brands are expected to operate independently for some time, preserving market diversity and customer choice.

Subscribe

* indicates required

The Enterprise is an online business news portal that offers extensive reportage of corporate, economic, financial, market, and technology news from around the world. Visit to explore daily national, international & business news, track market movements, and read succinct coverage of significant events. The Enterprise is also your reach vehicle to connect with, and read about senior business executives.

Address: 150th Ct NE, Redmond, WA 98052-4166

©2024 The Enterprise – All Right Reserved.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept