Nationwide Building Society has announced it has agreed the terms of a recommended cash offer to takeover Virgin Money.
The building society stated the acquisition will “deliver greater value” to its members and pledged to extend its Branch Promise.
This comes amid the trend of bank branch closures which have left communities across the country without access to physical banking services.
Previously, Nationwide Building Society has pledged to have a banking presence in every area its in until at least 2026.
However, the group has confirmed this Branch Promise will be extended to Virgin Money’s branches as well once the deal is offical.
According to the building society, the acquisition will “accelerate” its decision-making in offering better services to customers.
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Nationwide has agreed on a deal to takeover Virgin Money
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Furthermore, the building society announced it will extend its Branch Promise by an additional two years to 2028.
As such, Nationwide will continue to operate everywhere it has a branch for another four years in a boon for members.
In a joint statement by the boards of Nationwide and Virgin Money, it was revealed the agreed offer price is a total of 220p per Virgin Money share.
Debbie Crosbie, Nationwide’s chief executive, said: “This acquisition strengthens Nationwide and means we can offer more value and broader services for our current and future members.
“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.”
Kevin Parry, chairman of the building society, added: "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.”
As well as this, Nationwide also confirmed that chief financial officer Chris Rhodes will become the CEO of Virgin Money once the acquisition is complete.
Muir Mathieson, Nationwide’s deputy CFO and treasurer, will become CFO of Nationwide once the deal is implemented.
Both of these appointments are subject to regulatory approval and will report directly to Debbie Crosbie.
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The building society has pledged to keep its Branch Promise
GETTY/NATIONWIDEIt is estimated the combined banking group of Nationwide and Virgin Money will have total assets of around £336billion once the acquisition is complete.
When the preliminary agreement was put forward, the building society said it does not intend to make any material changes to the size of Virgin Money’s workforce “in the near term”.
On top of this, Nationwide reiterated that it would remain a mutual building society if the deal ends up going ahead.
Virgin Money has been among the many high street banks to close sites across the country, closing 39 branches last year.