Nationwide revealed in March that it would purchase Virgin Money in a cash transaction, offering 218 pence per share, plus an additional 2 pence as a dividend, valuing Virgin Money UK at £2.9 billion. The deal is expected to create the second-largest provider of mortgages and savings in the U.K.
Regulatory and Shareholder Approvals
The transaction, structured as a scheme of arrangement under the Companies Act 2006, requires approval from 75% of Virgin Money UK shareholders at a general and court meeting. Additionally, the merger necessitates regulatory approvals from the Prudential Regulation Authority and the Financial Conduct Authority. The companies aim to finalize the deal by December.
Nationwide-Virgin merger faces competition probe : Legal Advisors
Nationwide has enlisted Slaughter and May as its legal adviser, with a team led by partner David Watkins. Clifford Chance LLP is advising Virgin Money UK, with partners David Pudge and Katherine Moir heading the team.
Conclusion
The Nationwide-Virgin merger faces a critical competition probe that could shape the landscape of U.K. financial services. As the July 26 decision date approaches, all eyes will be on the CMA’s next move.
