The takeover of Virgin Money (VMUK) by Nationwide (NBS) has been given the all-clear by the competition regulator in the UK. The Competition and Markets Authority (CMA) is the national watchdog on these matters, and it launched an investigation in May after the proposed takeover was mentioned.
Virgin Money Takeover Given the All-Clear
At £2.9bn (5.6bn AUD), this is set to be the biggest merger to take place in the British banking industry since the financial crisis. The CMA was initially worried that the deal – agreed in March this year – could lower the level of competition in the UK banking sector.
However, the CMA confirmed on Friday that the recent probe was enough for it to clear the deal, with no more investigations needed. The check found that there isn’t a realistic risk of the competition being substantially lessened due to this merger.
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This has led to the companies confirming that they expect the deal to be completed in the last quarter of this year. Debbie Crosbie is the chief executive of Nationwide, and she stated:
This is another important step on the path to completing the acquisition of Virgin Money, with all the benefits for members and customers that this will bring.
She also stated that NBS is on course to get all the approval necessary to finalise the deal before 2024 ends. As for Virgin Money, a spokesman said they welcome the decision by the CMA to clear the way for the acquisition to go ahead, allowing both businesses to offer their products and service to a bigger customer base.
