Nationwide has sealed the £2.9bn acquisition of Virgin Money, which creates the country’s second-largest mortgage lender.
The mutual has formally completed the cash purchase of the high street bank, which will see Virgin Money’s listing removed from the stock market today.
Virgin Money chief executive David Duffy steps down and will be replaced by Chris Rhodes, who was the building society’s chief finance officer.
Nationwide plans to terminate the Virgin brand after four years and will rebrand the bank over the following two years.
The moves complete several key stages of the merger since it was announced in the spring.
In July, the Competition and Markets Authority cleared the merger between the two lenders
The regulator said, “the merger does not give rise to a realistic prospect of a substantial lessening of competition” across residential and landlord mortgages, as well as their credit card businesses.
In May, Virgin Money shareholders voted by an 89% majority to accept the mutual’s takeover offer. Nationwide members do not have a vote on the deal.
The surprise deal, announced in March, saw Nationwide offer Virgin Money shareholders 218p in cash and a 2p dividend to be paid in this financial year, or, if earlier, shortly before the completion of the takeover.
The offer was a 38% premium to Virgin Money’s 159.1p closing price of pence on 6 March, the day before the deal was announced.
