Nationwide's £2.9bn takeover of Virgin Money gets green light from regulator

It means the deal is likely to be completed by the end of this year.

The planned takeover 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.

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."

Virgin Money will continue to be run until its current brand for up to six years once the deal goes through, while Nationwide has promised all of it and Virgin Money’s existing branch locations will remain open until at least the start of 2028.

Ms Crosbie told the Nationwide AGM on Wednesday there had been a “huge amount of careful consideration of both the risks and opportunities” of buying Virgin Money.

But she said the building society was “very confident that the profits will more than cover any costs of integrating the business”.

She also said the bank’s range of credit cards was one of the reason why it decided to buy it.

Eventually, Virgin Money savers and borrowers are set to become Nationwide customers, but this will not happen automatically.

Virgin Money chief executive David Duffy will stand down on completion of the deal.

A Virgin Money spokesperson 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.”