As part of the acquisition, David Duffy, chief executive and executive director of Virgin Money, has departed his role, and he has been succeeded by Chris Rhodes.
Rhodes said: “This is the start of an exciting new chapter for Virgin Money as it becomes part of Nationwide, creating the UK’s second-largest provider of mortgages and savings accounts. The combination will be a mutual with a wider range of products and able to invest more in customer service.
“We’re excited about our future as two purpose-driven businesses with a shared goal of supporting our customers, colleagues and communities.”
In March, Nationwide confirmed it had made a £2.9bn cash offer for Virgin Money, and by May, the Competition and Markets Authority (CMA) announced it would be investigating the impact of the potential merger on customer choice.
This was later cleared, with the regulator saying the transaction “does not give rise to a realistic prospect of a substantial lessening of competition”. Following this, the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) also greenlit the merger.
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Virgin Money said the combination of the businesses would result in a “mutually owned, full-service organisation with enhanced investment in customer service and a wider range of products”.
Together, Nationwide and Virgin Money will have assets worth around £336.3bn and lending of approximately £283.5bn.
Virgin Money is expected to rebrand over a two-year period and the bank assured that in the meantime, it would be “business as usual”, with no impact on Virgin Money, Clydesdale and Yorkshire Bank products and services.
Kevin Parry, chair of Nationwide, said: “As we integrate Nationwide and Virgin Money carefully over time, the impact we have in communities across the UK, and the benefits we offer to members and customers, will only increase.”
Debbie Crosby, chief executive of Nationwide, added: “Nationwide is now a stronger mutual and able to deliver even greater value through our unique Branch Promise, leading customer satisfaction, and competitive savings and lending rates.
“All Virgin Money profits will be retained for the benefit of customers and, for the first time in the UK, a full-service business bank will be part of a large and modern mutual.”
