Nationwide Building Society Acquires Virgin Money UK for £2.9 Billion

Nationwide Building Society has officially accepted the proposal to acquire Virgin Money UK, endorsing a cash offer of £2.9 billion as presented by Virgin Money’s Board, reports Finextra. The agreement, reached earlier this month, is aimed at broadening the group's presence in the retail banking sector significantly.

In addition to this acquisition, Nationwide has revealed plans to prolong its Branch Promise for an additional two years, ensuring the establishment of more branches until 2028. Should the acquisition of Virgin Money be successful, this commitment will extend to include Virgin Money branches as well.

The Building Society emphasized that this deal will result in improved savings and lending rates for customers, while also enabling the company to expand its reach to a wider audience within the UK.

Nationwide has confirmed that Chris Rhodes, currently serving as CFO, will transition to the role of CEO at Virgin Money, succeeding the current CEO Muir Mathieson, who will step down.

Kevin Parry, chairman of Nationwide, remarked, "After thorough examination, comprehensive due diligence, and taking member feedback into careful consideration, Nationwide's Board has determined that accepting the binding offer to acquire Virgin Money is in the best interest of the Society and its current and future members."