• Swindon & Wiltshire M&A, deals
• Thursday May 23 2024
• Author Name: Peter Davison

Virgin Money shareholders back Nationwide takeover

Virgin Money shareholders have backed a bid by Swindon-based building society Nationwide to take over the bank.

Eighty-nine per cent of shareholders voted in favour of the £2.9 billion takeover. They included Sir Richard Branson, who owns 14.5 per cent of the bank.

Nationwide did not offer its own members – who are effectively its shareholders as part of its mutual corporate structure – a say on the takeover, which was first announced back in March.

This morning (Thursday) the mortgage lender announced pre-tax profits of £1.78 billion – down 20 per cent from the £2.23 billion profit it made in 2023.

The society said the housing market has remained subdued in the face of higher borrowing costs, with mortgage lending down 27 per cent.

However, there was good news for people with Nationwide mortgages or accounts. Its second Fairer Share Payment will distribute £385 million to members – each member will receive £100 next month.

Nationwide chief executive Debbie Crosbie said: “Our strong financial performance means we are able to offer more ways for our members to benefit from our success.

“This is only possible because we are owned by members and all our profits are reinvested for their benefit.”

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