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The acquisition of Virgin Money by Nationwide is poised to be one of the boldest takeovers in the financial industry, propelling Nationwide to a dominant position.
This is the biggest agreement ever made by a woman in the banking industry, following an announcement by Nationwide CEO Debbie Crosbie on Thursday morning about the intended purchase in the stock market.
Nationwide CEO Debbie Crosbie announced the plan as the stock market opened on Thursday
On the day before International Women’s Day, it was announced that the deal would result in the combined company having assets worth over £370 billion.
In the short term, both brands will continue to function separately and there will be no closures of Virgin Money branches.
The intended purchase was disclosed on Thursday morning.
The acquisition will result in a total of 24.5 million customers and 696 branches, in addition to the combined assets of £366.6 billion from Nationwide (£274.5 billion) and Virgin Money (£91.8 billion).
Nationwide boasts the most extensive network in the UK for a single brand. The merger will result in the joint group having the second largest branch network in the country, after Lloyds HBOS.
The merged organization will become the UK’s second-largest mortgage lender, surpassing NatWest.
The consolidated team will possess assets amounting to over £366 billion.
Nationwide has committed to upholding its “Branch Promise” for Virgin Money branches, ensuring that a branch will remain open at all locations where both companies have a presence until at least the beginning of 2026.
A personal finance accountant stated that Virgin Money has a poor track record when it comes to customer relations, while Nationwide has received recognition for excelling in this area.
Following Ms Crosbie’s bold decision to rebrand the British high street, Nationwide is once again making headlines with this unexpected purchase proposal.
Ms Crosbie said: “Importantly, Nationwide will remain a building society, and a combined group would bring the benefits of fairer banking and mutual ownership to more people in the UK, including our continuing commitment to retain existing branches, as part of our ‘Branch Promise’ and leading levels of customer service.
“We are confident that the merger will result in a more robust and varied company that can effectively provide benefits to our members and customers, both present and future.”
This is a developing news story and more information will be provided.
Source: independent.co.uk
