The Competition and Markets Authority (CMA) announced Friday it has initiated a formal investigation into Nationwide Building Society’s proposed £2.9 billion ($3.7 billion) acquisition of Virgin Money. The merger would result in a combined entity with assets totaling approximately £366 billion.
Nationwide-Virgin merger faces competition probe : Initial Phase One Investigation
The CMA has begun a phase one investigation to determine whether the merger could significantly reduce competition in any U.K. market. The authority is calling for comments from interested parties by June 14, ahead of its decision on whether to proceed to a phase two investigation, set for July 26.
“The deadline for the CMA to announce its decision whether to refer the merger for a phase two investigation is July 26,” the competition watchdog stated briefly. Nationwide did not immediately respond to a request for comment, while Virgin Money UK PLC declined to comment.
Industry Reactions and Transaction Details
Laith Khalaf, head of investment analysis at AJ Bell, noted that “Nationwide will be watching nervously as increasingly interventionist U.K. competition authorities weigh whether to escalate an initial probe into its deal for Virgin Money to a full-blown investigation.”
