Nationwide has agreed the terms of a recommended cash offer to takeover the Virgin Money business.
The joint statement by the boards of Nationwide and Virgin Money confirmed the agreed offer price is a total of 220p per Virgin Money share.
Nationwide believed the acquisition will create a financially stronger building society with returns that will deliver “greater value” to its members, including savings and lending rates that are better than the market average.
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.
Nationwide chief executive, Debbie Crosbie, 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.”
Crosbie added this includes Nationwide’s unique Branch Promise, which it is extending until at least the start of 2028 and will also apply to Virgin Money branches.
This makes the promise that everywhere Nationwide has a branch will still be there until at least the start of 2028.
Nationwide also confirmed 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 retires.
Additionally, Muir Mathieson, Nationwide’s deputy CFO and treasurer, will become CFO of Nationwide and both appointments are subject to regulatory approval and will report directly to Crosbie.
tom.dunstan@ft.com
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