Nationwide has completed its £2.9 billion takeover of Virgin Money to become the second largest provider of mortgages and savings in the UK.
Following the acquisition, Virgin Money’s shares have been cancelled from trading on the London Stock Exchange.
The takeover paves the way for the creation of a combined group that will serve around 24.5 million customers, over 25,000 staff and almost 700 branches.
However, the process is expected to take several years, with the Virgin Money brand eventually disappearing from UK high streets.
The brands are expected to continue to co-exist for between four to six years before Virgin Money eventually becomes Nationwide and its customers are switched over.
A judge at a specialist court approved the takeover last week, with 90% of Virgin Money’s shareholders backing the scheme during a vote earlier in the year.
Nationwide said it was not required to seek member’s permission for such an acquisition as it is a building society.
However, the takeover has been met with some criticism, with a small group of members organising a campaign in an attempt to force a vote.
Virgin Money was de-listed from the London stock market on Tuesday as a result of it being taken private.
Billionaire businessman Sir Richard Branson founded the bank in 1995 and the Virgin Group is expected to earn more than £400 million from the sale, as Sir Richard still holds a stake of 14.5%.
Debbie Crosbie, chief executive of Nationwide, said: “Nationwide is now a stronger mutual and able to deliver even greater value through our unique branch promise, leading customer satisfaction, and competitive savings and lending rates.
“All Virgin Money profits will be retained for the benefit of customers and, for the first time in the UK, a full service business bank will be part of a large and modern mutual.”
