Following news of the takeover, Martin Lewis’s MoneySavingExpert issued guidance to its readers
Nationwide’s £2.9 billion takeover of rival Virgin Money has been completed. On September 27, the deal was approved by a judge. Lawyers for the lenders secured the sanctioning of the deal at a specialist companies court in London.
The deal became effective on October 1. It comes after the building society agreed to the takeover of its London-listed rival in March. Nationwide struck the takeover deal with a 220p-a-share offer for Virgin Money, including a 2p-per-share dividend payout.
At the end of a short hearing, Judge Sir Anthony Mann said he was “satisfied” that legal requirements had been complied with. The court heard that 90% of shareholders who voted at a meeting in May had backed the scheme.
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Following news of the takeover, Martin Lewis’s MoneySavingExpert issued guidance to its readers. It confirmed there would be no immediate change for new or existing customers of either brand.
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However, it was mentioned that Virgin Money customers may be transferred to Nationwide eventually. According to MSE, this transfer won’t occur for at least a year, and it’s still unknown which customers will be moved or what the transfer process will entail.
Earlier this month, the lenders told the stock market that the Financial Conduct Authority and the Bank of England’s Prudential Regulation Authority had both approved the takeover.
The deal will bring together Britain’s fifth and sixth largest retail lenders, creating a combined group with around 24.5 million customers, more than 25,000 staff and nearly 700 branches.
But the move is set to ultimately spell the end of the Virgin Money brand, with Nationwide planning to rebrand the Virgin Money business as Nationwide within six years, although it will keep the two brands initially.
