The Competition and Markets Authority (CMA) has launched an investigation into Nationwide Building Society’s £2.9bn all-cash deal to buy Virgin Money.
The CMA said it is investigating whether the deal could result in a “substantial lessening of competition” in the UK.
In a statement to markets today (31 May), the regulator said the notice on the launch of its inquiry had been sent to the parties.
The CMA has also invited comments from any interested parties on the transaction by June 14.
The deadline for the phase one decision is 26 July 2024.
Nationwide is the UK’s third largest mortgage provider. And Virgin Money is the UK’s sixth-largest retail bank by assets.
In March, the boards of both businesses agreed to the terms of a recommended cash acquisition. The deal, which is subject to regulatory approval, could create the country’s second-largest savings and mortgage provider.
Lessening of competition? Are they kidding? Look at all the banks and specialists out there from the likes of Barclays and Lloyds to Aldemore & Marcus. High time the likes of the of the big 4 were shaken up and this merger will give the Nationwide some real muscle to do so. Sounds like vested interests have been lobbying.
Nationwide have been talking about offering business accounts for as long as I can remember…
Their goal to become the biggest in the big markets will fail – as before – as they cannot/will not roll the dice with even a small portion of their balance sheet… evidence – withdrawal of lifetime mortgages as soon as the swap rate exceeded their cash rate for margin call. Yet, were still happy to offer others’ products…
Without serious market making, debt trading/bundling, income from business (account) activity, and severe economies in the customer service dept. they will stay the biggest B. Soc. and amen for that!
They still have the best and human telephone service – please don’t change… Become market leader in structured products – real added value, real margins, real blue water between greedy bank offerings and somethings worthwhile!
No structuring dept…. why, just write me here… IHT, Directors’ Loans, Family, Value transfer…