Shareholders OK Yorkshire Bank-Virgin Money Deal

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.”

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Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.