Nationwide announces today that it has agreed the terms of a recommended cash offer with Virgin Money’s Board for the Virgin Money business.

Nationwide believes that the acquisition will create a financially stronger building society with returns that will deliver greater value to its members, including savings and lending rates that are, on average, better than the market average. Nationwide’s Board agreed that a binding offer to acquire Virgin Money was in the best interests of the Society, and its present and future members, following full consideration and the appropriate due diligence, and after taking comments from members into account.

The deal will bring an established business banking service within the Nationwide Group, and the benefits of fairer banking and mutual ownership to more people in the UK.

Nationwide will continue to focus on providing leading levels of customer service. It has today announced that it will also extend its Branch Promise by another two years so that everywhere it has a branch, it promises to still be there until at least the start of 2028. Should Nationwide be successful in buying Virgin Money, the Promise will also apply to Virgin Money branches, following the completion of any existing Virgin Money branch closure plans.

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.”

Nationwide believes that the acquisition will enable Nationwide to accelerate its strategy and broaden and deepen its products and services faster than could be achieved on its own.

Kevin Parry, chairman of Nationwide 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.”

The joint statement by the boards of Nationwide and Virgin Money has confirmed that the agreed offer price is a total of 220p per Virgin Money share.

Nationwide has also confirmed that its Chief Financial Officer, Chris Rhodes, will become the CEO of Virgin Money once the acquisition is complete and Virgin Money’s current CEO steps down. Muir Mathieson, Nationwide’s Deputy CFO and Treasurer, will become CFO of Nationwide. Both appointments are subject to regulatory approval and will report directly into Debbie Crosbie.