The Financial Conduct Authority and the Prudential Regulation Authority have approved Nationwide’s cash acquisition of Virgin Money.
However, the scheme remains subject to certain other conditions, including sanction by the court at the court hearing which is expected to take place on September 27.
Subject to the scheme achieving its other conditions, the purchase is expected to become effective on October 1.
The £2.9bn deal was first announced in March and is set to be implemented through a scheme of arrangement between Virgin Money and its shareholders
The acquisition was previously approved by Virgin Money shareholders at their meeting held in May.
As all relevant regulatory approvals have now been received, Virgin Money will now seek the sanction of the scheme by the court in accordance with the timetable.
The acquisition will not require any immediate changes to the capital structure of the Virgin Money group, or the combined group as a whole.
The PRA confirmed it intends to apply sub-consolidated prudential requirements to Virgin Money until December 31 2028.
This means outstanding externally held funds issued by Virgin Money will, subject to applicable deductions, be eligible to meet the consolidated capital requirements applicable to the combined group.
Additionally, Nationwide announced that Chris Rhodes would be stepping down from the Nationwide board to spend the period until completion preparing to become the chief executive officer of Virgin Money.
tom.dunstan@ft.com
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