Find out how much the mutual will pay…
Nationwide Building Society has announced that it has agreed to the terms of a recommended cash offer with Virgin Money’s board for the £2.9 billion acquisition of the business.
The acquisition price stands at 220p per Virgin Money share, as confirmed by a joint statement from Nationwide and Virgin Money.
The agreement was reached after Nationwide’s board concluded that the acquisition would serve the best interests of its current and future members, factoring in diligent evaluations and member feedback.
“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,” said Kevin Parry (pictured left), chairman of Nationwide.
The move, Nationwide believes, will create a financially stronger building society, promising members enhanced value through more competitive savings and lending rates. It is also expected to incorporate a well-established business banking service into the Nationwide Group, extending the perks of equitable banking and mutual ownership to a wider UK audience.
“This acquisition strengthens Nationwide and means we can offer more value and broader services for our current and future members,” said Debbie Crosbie (pictured right), chief executive of Nationwide Building Society. “More people will experience the benefits of mutual ownership and the customer-focused approach of a building society.”
Nationwide has pledged to keep its branches open until at least the start of 2028, a promise that will also extend to Virgin Money branches post-acquisition.
Also, in line with the acquisition, Nationwide has announced executive changes, with chief financial officer Chris Rhodes set to become chief executive of Virgin Money upon the retirement of Virgin Money’s current CEO. Muir Mathieson, Nationwide’s deputy CFO and treasurer, will assume the CFO role at Nationwide. Both appointments are pending regulatory approval.
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