It’s a done deal for CYBG Plc and the financial and insurance firm founded by Sir Richard Branson.
It was four months ago that CYBG announced the all-share offer to acquire Virgin Money Holdings (UK) Plc, and now things have become official with the completion of the £1.7 billion swoop. Virgin Money’s new owner, which is known for Clydesdale Bank and Yorkshire Bank, said the combined group creates the first true national competitor which will disrupt the status quo in UK banking.
Through multi-channel distribution, Virgin Money offers insurance, mortgages, as well as savings and credit cards. Its merger with CYBG translates to a total of more than six million customers and an entity twice as big as any other challenger bank.
“Bringing the two banks together creates the UK’s sixth largest bank combining strong product, service, and technology capabilities alongside an iconic brand with well-known consumer champion credentials,” said CYBG chief executive David Duffy, who believes the unique combination will enable them to compete with the incumbents.
“We are focused on delivering an excellent customer experience as we bring the two businesses together,” added Duffy. “This will be achieved through a clear, low-complexity, phased integration and re-branding plan over the next three years.”
Former Virgin Money chief financial officer Peter Bole will take on the role of group integration director to be in charge of the integration programme across the two companies.
“The Virgin Group started Virgin Money 23 years ago to shake up the UK’s banking sector,” noted Virgin Group chief executive Josh Bayliss. “By putting customers and employees first, and working to make a real difference to people’s lives, we quickly became one of the most admired financial services businesses in the UK.”
He sees the completion of the acquisition as the beginning of the next chapter in Virgin Money’s story.
“The combination of Virgin Money and CYBG will offer unrivalled service, an innovative digital platform, and outstanding products, bringing huge benefits for customers, employees, and communities alike,” said Bayliss. “Together we have the size, scale, and financial firepower to change banking for good.”
