The boards of Virgin Money Holdings (UK) PLC and CYBG PLC have agreed the terms of a recommended all-share offer to be made by CYBG for Virgin Money.
The deal is expected to be worth around £1.7bn and the directors at CYBG believe the combination of CYBG and Virgin Money will bring together the complementary strengths of the two challenger banks to form a national competitor to the status quo.
Following the completion of the offer, Jim Pettigrew, chairman at CYBG; David Duffy, CEO at CYBG (pictured above); and Ian Smith, CFO at CYBG, will retain their current positions in the combined group.
In addition, Jayne-Anne Gadhia, CEO at Virgin Money, who has been in her current position for over 10 years, has agreed in principle to support the combined group as a senior adviser to the CEO (in a consultancy role) for a period of time beyond completion of the offer.
David said that the alliance offered a genuine alternative for consumers and small businesses.
“By combining two of the UK's leading challenger banks, we will create a national, full-service bank with the capabilities needed to compete effectively with the large incumbent banks.
“We are bringing together CYBG's 175-year heritage in serving retail and SME customers and advanced digital technology, with the iconic Virgin Money brand and consumer champion credentials.
“Together we will serve around six million customers, with the scale, capabilities and financial muscle to disrupt the status quo – and with a clear ambition to provide our customers with the best service in the UK.”
Jayne-Anne added: “When Virgin Money was established in financial services in 1995, we vowed to change the world of banking for good.
“We were the first UK financial services company to offer investment products directly to customers.
“We transformed the mortgage market and, as a result, saved customers hundreds of millions of pounds by introducing daily mortgage interest calculations.
“In January 2012, we successfully acquired Northern Rock and built a broader business from the solid foundations and wonderful people of the North East of England.
“We aim to offer good value to customers, treat employees well, make a positive contribution to society and create value for shareholders.”
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
OakNorth to double size of Manchester team
OakNorth has announced it will be doubling the size of its Manchester team due to an increase in demand for its loans in the region...
UTB hires Simon Burnell as head of product development
United Trust Bank (UTB) has appointed Simon Burnell (pictured above) as head of product development for its mortgages and bridging division...
Monzo raises £20m in latest crowdfunding round
Monzo has raised £20m in just over two days via its third crowdfunding round...
Could more banks look to use gamification?
Gamification is defined as the application of typical elements of game playing to other areas of activity, typically as an online marketing technique to encourage engagement with a product or service...
Bank Leumi (UK) appoints chief business officer
Bank Leumi (UK) has announced the appointment of Andy Mallin (pictured above) as chief business officer...
Handelsbanken launches UK banking subsidiary
Handelsbanken has launched its new UK subsidiary Handelsbanken PLC as it looks to continue the next stage of its growth in the UK...
Making the most of savings in 2019
Personal finance headlines and best-buy tables are dominated by retail savings products, with very few column inches dedicated to helping businesses determine the best places to stash their cash...
PCF posts 44% pre-tax profit increase
PCF Group PLC has reported a 44% increase in pre-tax profits to £5.2m (2017: £3.6m) in its preliminary results for the year ended 30th September 2018...
Mortgage Sleep Out raises over £100,000
Mortgage Sleep Out has raised more than £100,000 for End Youth Homelessness (EYH)...
Gatehouse Bank launches home purchase plan product
Gatehouse Bank has announced the launch of its first home purchase plan product after securing regulatory approval...
Monese offers free premium current accounts for dual UK/EU citizens
Monese has announced the launch of free premium current accounts for those holding dual EU/UK citizenship...