Nationwide Building Society to acquire Virgin Money in $3.7b deal

By Gloria Methri

UK-based private lender Nationwide Building Society has confirmed the acquisition of its rival Virgin Money for around £2.9 billion ($3.7 billion). The building society stated that the acquisition would deliver greater value to its members and reiterated its commitment to extending its Branch Promise.

The deal is set to launch Nationwide into business banking and increase its share of the UK’s mortgage and savings market. The acquisition is believed to enable Nationwide to accelerate its strategy and broaden and deepen its products and services.

Under the terms of the transaction, Nationwide will pay 220p in cash for each Virgin Money share. The combined group would have assets of about £366 billion, making it the second-largest provider of mortgages and savings in the UK.

“This acquisition strengthens Nationwide and means we can offer more value and broader services for our current and future members,” said Debbie Crosbie, Nationwide’s Chief Executive. “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.”

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 steps down. Muir Mathieson, Nationwide’s Deputy CFO and Treasurer, will become Nationwide’s CFO. Both appointments are subject to regulatory approval and will report directly to Debbie Crosbie.

Nationwide Building Society also extended its commitment to keep a branch open in every location it is present in until at least the start of 2028. Should Nationwide be successful in buying Virgin Money, the Promise will also apply to Virgin Money branches,