• Swindon & Wiltshire M&A, deals
• Monday July 22 2024
• Author Name: Peter Davison

Competition and Markets Authority clears Nationwide’s takeover of Virgin Money

The Competition and Markets Authority has given the green light to Nationwide’s takeover of Virgin Money, following a seven-week investigation.

The watchdog ruled on Friday that the £2.9 billion takeover by the Swindon-headquartered building society – the biggest since the financial crisis in 2008 – would not lead to a substantial lessening of competition in the home loans market.

Virgin Money shareholders – including its largest investor, founder Sir Richard Branson – overwhelmingly backed the deal in May, after which the CMA stepped in.

Responding to the CMA approval, Nationwide’s chief executive Debbie Crosbie said: This is another important step on the path to completing the acquisition of Virgin Money, with all the benefits for members and customers that this will bring.

“We remain on course to receive all the necessary approvals to complete the deal in the final three months of this year.”

Virigin Money said: “We welcome the CMA’s decision to unconditionally clear the proposed acquisition by Nationwide after its phase 1 investigation.

“The enlarged group will combine two complementary businesses that together can offer more great products and services to a larger customer base.”

Nationwide will pay £15 million in annual royalties to Virgin Group to use the brand name over the first four years, before paying £250 million to exit the contract, and eventually phasing out the Virgin Money brand.

Latest: Regulators give green light to Nationwide’s Virgin takeover