CYBG to acquire Virgin Money for £1.7bn in shares.

Clydesdale and Yorkshire Banking Group
will pay £1.7bn in shares for Virgin Money

Virgin Money has agreed to be acquired by its rival Clydesdale and Yorkshire Banking Group in a £1.7bn all-share deal that CYBG says will create “the UK's first true national competitor” to the established banks.

CYBG is offering Virgin Money’s investors 1.2125 of its shares for each of their shares, meaning they would control 38pc of the combined company should the deal go ahead.

It plans to retain the Virgin Money brand and will pay Richard Branson’s Virgin Enterprises royalties of £15m per year as part of a licensing agreement, as well as allowing the conglomerate to nominate a non-executive director to the combined company’s board.

By Jack Torrance.

Full story at Yahoo News.