Virgin Money proposed takeover by Nationwide

High street lender Virgin Money has agreed a £2.9 billion proposed takeover by Nationwide Building Society in a move set to create the UK’s second largest mortgage and savings group.

Nationwide has put forward a 220p-a-share approach for Virgin Money, including a planned 2p-per-share dividend payout, which it said is a 38% increase on Virgin Money’s closing share price on Wednesday.

The companies said they had reached a preliminary agreement on the deal, with Nationwide now looking through Virgin Money’s books before making a firm offer.

The planned tie-up would create a combined lender worth around £366.3 billion, with total lending and advances of about £283.5 billion.

Nationwide said it does not intend to make any material changes to the size of Virgin Money’s 7,300-strong workforce “in the near term”.

Nationwide also stressed it will remain a mutual building society if the deal goes ahead.

Published: 07/03/2024 by Radio NewsHub