Nationwide Building Society’s £2.9bn acquisition of Virgin Money is set to conclude next week following judicial approval.
The legal endorsement was secured at a specialist companies court in London on Friday, marking a pivotal step in the consolidation of two of the UK’s prominent retail lenders. This follows Nationwide’s agreement in March to a 220p-per-share takeover, which includes a 2p-per-share dividend payout for shareholders of the Newcastle-based Virgin Money.
Judge Sir Anthony Mann, overseeing the proceedings, affirmed the compliance with legal prerequisites during the brief hearing, stating, ‘It’s obviously a sensible scheme with financial benefits. There is no apparent blot on this scheme.’
The deal, championed by 90% of shareholders who voted in favour at a meeting in May, had previously attained regulatory approval from both the Financial Conduct Authority and the Bank of England’s Prudential Regulation Authority earlier this month.
Upon completion, the merger will amalgamate Britain’s fifth and sixth largest retail lenders, forming a conglomerate with approximately 24.5 million customers, a workforce exceeding 25,000, and nearly 700 branches nationwide. However, this strategic move foresees the eventual cessation of the Virgin Money brand, with a rebranding to Nationwide anticipated within six years, despite the initial retention of both brands.
In a joint statement released on Friday, representatives from Virgin Money and Nationwide confirmed the deal’s expected effective date as October 1.
The merger signifies a substantial transformation in the landscape of British retail banking, poised to enhance service provisions across a vast customer base.
