Nationwide Building Society (GB:NBS) today got the final green light for the acquisition of its rival company Virgin Money UK (GB:VMUK). The UK’s financial regulators, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), have given the final go-ahead to the deal. The acquisition will be now completed next month.
Following the announcement, NBS stock lost 0.084% as of writing. Whereas, Virgin Money shares were up by 0.56%.
Nationwide Building Society is one of the world’s largest building societies and provides retail financial services. Meanwhile, Virgin Money is a financial services brand under the Virgin Group umbrella. The deal marks an unusual acquisition of a publicly listed bank by a member-owned building society.
Details on Nationwide-Virgin Money Acquisition
The Nationwide-Virgin Money acquisition was first announced in March 2024, when both companies agreed on an all-cash transaction worth £2.9 billion. Once finalized, the merger will form a new entity with assets totaling around £366.3 billion. This deal will establish Nationwide as the UK’s second-largest mortgage and savings provider.
According to the terms of the agreement, Virgin Money shareholders will receive 220p per share, which includes a proposed 2p dividend per share.
With this deal, Nationwide aims to speed up the expansion of its products and services beyond its organic growth. After the acquisition’s completion, Nationwide plans to rebrand Virgin Money as Nationwide within six years, though both brands will be retained initially.
What Is the Target Price for Virgin Money Stock?
On TipRanks, VMUK stock has been assigned a Hold rating based on one Hold recommendation from Barclays. The Virgin Money share price target is 220p, which is 1.5% above the current trading level.
