Competition watchdog clears Nationwide’s £2.9bn Virgin Money takeover

The CMA said there is not a ‘realistic prospect of a substantial lessening of competition’ from the deal.

The CMA said it has now cleared the deal following its initial probe (PA) (PA Archive)

Nationwide’s £2.9 billion takeover of banking firm Virgin Money has been cleared by the UK’s competition regulator.

The building society agreed the takeover of its London-listed rival in March.

In May, the Competition and Markets Authority (CMA) watchdog launched an initial merger inquiry to consider whether the deal – which is the biggest UK banking merger since the financial crisis – could “result in a substantial lessening of competition” within the UK market.

On Friday, the CMA said it has now cleared the deal following its initial probe.

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

Debbie Crosbie, chief executive of Nationwide

It said there is no need for further investigations after finding that there is not a “realistic prospect of a substantial lessening of competition” from the takeover.

The firms said they now expect to be able to complete the deal in the final quarter of 2024.

Debbie Crosbie, chief executive of Nationwide, said: “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.

“We remain on course to receive all the necessary approvals to complete the deal in the final three months of this year.”

A Virgin Money spokesman said: “We welcome the CMA’s decision to unconditionally clear the proposed acquisition by Nationwide following its Phase 1 investigation.

“The enlarged group will combine two complementary businesses that together can offer more great products and services to a larger customer base.

“We continue to expect that the transaction will complete in the fourth quarter of this year.”