The UK Competition & Markets Authority on Friday said it will not proceed with an investigation into the planned acquisition of Virgin Money UK PLC by Nationwide Building Society.
The decision gives a green light to the takeover of Leeds-based lender Virgin Money UK, which last month reported an 18% profit jump to £279 million in the six months to March 31, from £236 million a year prior. Net interest income had grown 1.5% to £868 million from £855 million.
In early March, Nationwide reached a preliminary agreement with Virgin Money to acquire the company for 220 pence per share, comprising 218p and a 2p dividend, and equating to a total valuation of £2.9 billion. This represented a 38% premium to the Virgin Money’s closing price of 159.05p the day before the offer.
In May, the requisite number of Virgin Money shareholders voted in favour of the scheme, expected to complete in the fourth quarter of 2024 following court sanctioning.
In late May, the CMA had announced it was considering whether the planned takeover could lessen competition in the UK.
Virgin Money UK shares were 0.1% higher at 215.20 pence each late on Friday morning in London.
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