Terms agreed for Nationwide takeover of Virgin Money

Directors of Nationwide Building Society and Virgin Money UK PLC have agreed terms of a recommended cash acquisition of Virgin Money by Nationwide.

It comprises 218 pence per Virgin Money Share in cash consideration and a proposed dividend of two pence per Virgin Money Share to be paid as part of Virgin Money’s ordinary course FY2024 dividend calendar or, if earlier, shortly prior to completion.

The total value of 220 pence per Virgin Money Share values the entire issued and to be issued share capital of Virgin Money at approximately £2.9bn.

The Boards of Nationwide and Virgin Money say this acquisition will combine two complementary businesses, creating the second largest provider of mortgages and savings in the UK.

Nationwide explains the deal will enable it to accelerate its strategy and broaden and deepen its products and services faster than could be achieved organically.

It adds the takeover will also provide a return that will further support Nationwide’s financial strength and deliver greater value to customers and members.

Chief executive officer of Nationwide Building Society, 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.

“This includes Nationwide’s unique Branch Promise, which we are extending until at least the start of 2028. The Promise will also apply to Virgin Money branches.”

CEO of Virgin Money UK PLC, David Duffy, added: “The proposed combination with Nationwide presents an exciting opportunity to build on Virgin Money’s significant strategic and operational progress, including the consistent growth in our retail and business customers, deposits and target lending.

“Together the combined group can offer more great products and services to a larger customer base.”