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Nationwide Building Society’s £2.9 billion acquisition of Virgin Money UK (LSE:VMUK) has received regulatory approval, as announced on Friday. Both the Financial Conduct Authority and the Bank of England’s Prudential Regulation Authority have endorsed the transaction, marking a notable instance of a member-owned building society taking over a publicly listed bank.
The deal, first announced in March, was described by Nationwide Chief Executive Debbie Crosbie as "an exciting opportunity to create a more diverse business that delivers even more value to our members and will strengthen Nationwide financially." The acquisition received shareholder approval from Virgin Money in May, although Nationwide’s members did not have a vote on the matter.
The Competition and Markets Authority supported the deal in July, clearing the way for the implementation of the transaction under a scheme of arrangement. With regulatory approval now secured, the next step is a court hearing scheduled for late September to sanction the scheme. Following this, Virgin Money’s shares will be suspended from trading.
The cancellation of Virgin Money’s listings on the London Stock Exchange and the Australian Securities Exchange will take effect on 1 October, the effective date of the scheme.
On the same day, Nationwide also announced the appointment of Chris Rhodes as the new chief executive of Virgin Money. Rhodes will step down as chief financial officer of Nationwide with immediate effect and will assume his new role on 1 October. He will be succeeded by Muir Mathieson, the current deputy chief financial officer of Nationwide.
Virgin Money’s current CEO, David Duffy, will retire as part of the transition.
