Richard Branson has already indicated he will back takeover that will require the agreement of the group’s shareholders.
In brief:
- The acquisition, which will solidify Nationwide’s position as the UK’s second-largest mortgage lender, will also trigger the resignation of Virgin Money boss David Duffy, and is likely to lead to job cuts as well as an official “review” of the combined group’s workforce.
- While Nationwide has stopped short of offering its own members a vote on the deal – citing UK takeover rules of publicly listed companies – it will still need approval from Virgin Money shareholders.
- The listed bank, which will operate semi-autonomously for the first six years, will instead be led by Nationwide’s finance chief, Chris Rhodes, who will report directly to Nationwide’s chief executive – and one of Duffy’s former deputies – Debbie Crosbie.
What does this mean?
Nationwide chair, Kevin Parry, said: “Following full consideration and the appropriate due diligence, and after taking comments from members into account, the board of Nationwide’s assessment is that the binding offer to acquire Virgin Money is in the best interests of the society and its present and future members.”
