Shareholders of Clydesdale and Yorkshire Bank owner CYBG and shareholders of Virgin Money on Monday overwhelmingly approved the all-share deal for CYBG to take over its Newcastle-based rival in a deal that values Virgin Money at roughly £1.7 billion.
The deal will see the combined firm mainly use the Virgin Money brand, with the merged firm paying a royalty to licence the brand “for financial services in respect of retail, SME and corporate customers in the UK.”
Some analysts said the merger could lead to the combined firm making further acquisitions, with TSB now a possible candidate after its major IT problems and CEO departure.
Virgin Money CEO Jayne-Anne Gadhia said: “I am delighted with the support from our shareholder base in approving the recommended all-share offer for Virgin Money by CYBG.
“Bringing together the complementary strengths of Virgin Money and CYBG will create the UK’s first true national competitor in UK banking, improving competition and choice for all UK consumers, while enabling the Virgin Money franchise to continue to flourish.”