Judge approves Nationwide’s £2.9bn takeover of Virgin Money
A specialist court’s sanctioning of the deal follows approval being received from financial regulators.
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Your support makes all the difference.Nationwide’s £2.9 billion takeover of rival Virgin Money has been approved by a judge.
Lawyers for the lenders secured the sanctioning of the deal at a specialist companies court in London on Friday.
It comes after the building society agreed to the takeover of its London-listed rival in March.
I can see no reason not to sanction the scheme and in my discretion I will do so
Nationwide struck the takeover deal with a 220p-a-share offer for Virgin Money, including a 2p-per-share dividend payout.
At the end of a short hearing, Judge Sir Anthony Mann said he was “satisfied” that legal requirements had been complied with.
The court heard that 90% of shareholders who voted at a meeting in May had backed the scheme.
“It’s obviously a sensible scheme with financial benefits,” Sir Anthony said, adding: “There is no apparent blot on this scheme.”
He continued: “I can see no reason not to sanction the scheme and in my discretion I will do so.”
Earlier this month, the lenders told the stock market that the Financial Conduct Authority and the Bank of England’s Prudential Regulation Authority had both approved the takeover.
The deal will bring together Britain’s fifth and sixth largest retail lenders, creating a combined group with around 24.5 million customers, more than 25,000 staff and nearly 700 branches.
But the move is set to ultimately spell the end of the Virgin Money brand, with Nationwide planning to rebrand the Virgin Money business as Nationwide within six years, although it will keep the two brands initially.
In a joint statement on Friday, Virgin Money and Nationwide said the deal is expected to become effective on October 1.