Nationwide seals £2.9bn Virgin Money takeover deal
Building society to acquire lender in deal creating UK's second-biggest mortgage provider.
The board of Virgin Money (LSE: VMK) has accepted a £2.9 billion takeover offer from high street rival Nationwide Building Society to create the UK's second-largest provider of mortgages and savings.
The deal values Virgin Money shares at 220p each, a 38% premium on its stock price before the offer was first announced. Upon completion in Q4 2024, the combined group will have around 700 branches and £366.3 billion in total assets.
Virgin Money CEO David Duffy will step down after the takeover concludes, with Nationwide CFO Chris Rhodes succeeding him. While initially operating as a separate legal entity with its own board and banking licence, Virgin Money will have four years to rebrand under the Nationwide name.
No material workforce changes are expected at Virgin Money's 7,300-strong staff in the near term, though some job cuts may occur in overlapping central functions.
Virgin Money shares rose 2.1% on Thursday morning.
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