CMA to probe Nationwide Building Society / Virgin Money merger
The Competition and Markets Authority is investigating the anticipated acquisition by Swindon-headquartered Nationwide Building Society of Virgin Money UK PLC.
In March 2024, Nationwide confirmed its offer to buy Virgin Money for £2.9 billion , which the building society says would create a combined group with assets of approximately £366 billion.
It believes that the acquisition will create a financially stronger building society with returns that will deliver greater value to its members.
At the time of the announcement last month, Debbie Crosbie, Nationwide’s Chief Executive said: “This acquisition strengthens Nationwide and means we can offer more value and broader services for our current and future members. More people will experience the benefits of mutual ownership and the customer-focused approach of a building society. This includes Nationwide’s unique Branch Promise, which we are extending until at least the start of 2028. The Promise will also apply to Virgin Money branches.”
Nationwide believes that the acquisition will enable Nationwide to accelerate its strategy and broaden and deepen its products and services faster than could be achieved on its own.
Kevin Parry, chairman of Nationwide said: "Following full consideration and the appropriate due diligence, and after taking comments from members into account, the Board of Nationwide’s assessment is that the binding offer to acquire Virgin Money is in the best interests of the Society and its present and future members.”
The joint statement by the boards of Nationwide and Virgin Money has confirmed that the agreed offer price is a total of 220p per Virgin Money share.
Nationwide said that its Chief Financial Officer, Chris Rhodes, will become the CEO of Virgin Money once the acquisition is complete and Virgin Money’s current CEO steps down. Muir Mathieson, Nationwide’s Deputy CFO and Treasurer, will become CFO of Nationwide.
