Nationwide Building Society is poised to acquire its smaller counterpart, Virgin Money, in a deal valued at approximately £2.9 billion. This agreement, reached earlier this month, is expected to establish the UK's second-largest mortgage and savings group. Virgin Money, previously acquired by Clydesdale Bank in 2018, operates with a staff of approximately 3,000 at its Glasgow headquarters. Nationwide has stated its intention to maintain the current staffing levels at the headquarters "in the near term."
Nationwide has put forward a 220p-a-share approach, including a planned 2p-per-share dividend payout, which will now be voted on by Virgin Money shareholders.
Nationwide said: “Nationwide’s board agreed that a binding offer to acquire Virgin Money was in the best interests of the society, and its present and future members, following full consideration and the appropriate due diligence, and after taking comments from members into account.”
The tie-up would create a combined lender worth around £366.3bn, with total lending and advances of about £283.5bn.
Nationwide said it does not intend to make any material changes to the size of Virgin Money’s 7,300-strong workforce “in the near term”.
However, the acquisition will mark the conclusion of the Virgin Money brand, as Nationwide intends to rebrand the Virgin Money operations as Nationwide within six years, while maintaining both brands initially. Nationwide has committed to retaining a branch in every location where the combined group operates until at least the beginning of 2026, emphasising its appreciation for Virgin Money's continued presence in Glasgow and Newcastle.