UK's private lender Nationwide Building Society confirms to take over rival Virgin Money for $3.7B

By Gokhan Ergocun

ISTANBUL (AA) – The UK-based private lender Nationwide Building Society has confirmed to take over its rival firm Virgin Money for around £2.9 billion ($3.7 billion).

"Nationwide believes that the acquisition will create a financially stronger building society with returns that will deliver greater value to its members, including savings and lending rates that are, on average, better than the market average," the lender said in a press release.

The acquisition will bring an established business banking service within the Nationwide Group, it noted.

Debbie Crosbie, Nationwide’s chief executive, said: “This acquisition strengthens Nationwide and means we can offer more value and broader services for our current and future members. More people will experience the benefits of mutual ownership and the customer-focused approach of a building society."

Banks have confirmed to agree offer price of £2.2 ($2.8) per Virgin Money share.

Nationwide has also confirmed that its CEO Chris Rhodes will become the CEO of Virgin Money once the acquisition is completed and Virgin Money’s current CEO retires.