City watchdog clears CYBG’s £1.7bn Virgin Money deal

CYBG has been given regulatory approval for its £1.7 billion takeover of Virgin Money.

The groups said on Thursday that the Financial Conduct Authority and the Prudential Regulation Authority have given their blessing to the all-share deal.

“The offer was made subject to the… receipt of the relevant approvals from the Financial Conduct Authority and the Prudential Regulation Authority.

“Virgin Money and CYBG are pleased to confirm that, on 3 October 2018, the FCA and the PRA gave written notice to CYBG, Virgin… of their approval of the acquisition.”

Investors in both firms voted overwhelmingly in favour of the deal last month.

The union will see the owner of Clydesdale Bank, Yorkshire Bank and B brand takeover the Richard Branson-backed lender, creating an entity with around six million customers.

CYBG’s David Duffy will stay on as chief executive, leaving Virgin Money boss Jayne-Anne Gadhia to serve in a consultancy role as his senior adviser.

The boards of both CYBG and Virgin Money believe the deal will create the UK’s “first true national banking competitor”, offering a sound alternative to both SME and personal banking customers.

The combined group will rebrand as Virgin Money.

Ms Gadhia has said that the tie up will “accelerate the delivery of our strategic objectives”.