Regulatory green light for Virgin Money swoop
The two firms said that the Financial Conduct Authority and the Prudential Regulation Authority had given the nod to their all-share deal. Investors had already voted overwhelmingly in favour of the tie-up.
The deal will see the owner of Clydesdale Bank, Yorkshire Bank and the B online banking brand acquire the Sir Richard Branson-backed lender, creating an industry challenger with some six million customers.
CYBG’s David Duffy will stay on as chief executive, leaving Virgin Money boss Jayne-Anne Gadhia to serve in a consultancy role as his senior adviser.
The boards of both CYBG and Virgin Money believe the deal will create the UK’s “first true national banking competitor”, offering a sound alternative to both small and medium-sized business and personal banking customers. The tie-up still requires court sanctioning.
The enlarged operation will be headquartered in Glasgow but the centuries-old Clydesdale Bank name is set to disappear from Scotland’s high streets.
The firms said in June that they recognised “that there will be a loss of jobs” as a result of the takeover, likely to number about 1,500 over three years. The bulk of those cuts are likely to affect senior management positions, as CYBG has said there is “very little in overlap” in customer-facing roles. The enlarged group will see CYBG’s Jim Pettigrew continue on as chairman.