Finance
UK Bank M&A Heats Up With Nationwide’s £2.9 Billion Bid for Virgin Money
- Virgin Money shareholders would get 220 pence a share
- Challenger bank could attract other bidders, Numis says
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Nationwide Building Society has reached a preliminary agreement to buy Virgin Money UK Plc for £2.9 billion ($3.7 billion), in a deal that raises the stakes for consolidation among Britain’s mid-sized lenders.
Virgin Money, which was created by a string of mergers, has been struggling to compete with the “big four” banks that dominate accounts and mortgages. When combined, Nationwide and Virgin would overtake NatWest Group Plc as the UK’s second-largest provider of home loans, behind only Lloyds Banking Group Plc.