CYBG acquires Virgin Money for £1.7bn

By Jason Harris

London-based bank CYBG, the owner of Clydesdale Bank and Yorkshire Bank, has agreed to acquire Virgin Money in a deal worth £1.7bn.

The transaction will see each Virgin Money share exchanged for 1.2125 CYBG shares, giving Virgin Money shareholders a 38% stake in the combined group.

See also:

The merger is set to see CYBG become the UK’s sixth largest bank with approximately six million customers in total – 2.7mn from CYBG and 3.3mn from Virgin Money.

“By combining two of the UK's leading challenger banks, we will create a national, full-service bank with the capabilities needed to compete effectively with the large incumbent banks,” said David Duffy, CEO of CYBG.

“We are bringing together CYBG's 175-year heritage in serving retail and SME customers and advanced digital technology, with the iconic Virgin Money brand and consumer champion credentials.”

Further, in total the combined firm will be responsible for approximately £84.3bn in total assets, 243 branches, and 9,500 employees. However, CYBG has stated its intent to reduce this total workforce by one sixth following completion of the deal, with approximately 1,500 jobs at risk.

The combined bank will operate under the existing Virgin Money brand as a result of a £12mn licensing deal with Richard Branson’s Virgin Group, later set to rise to £15mn.


Featured Articles

Meet the COO: Brook Sims of MAC Diversity Recruiters

Passionate about helping others find their voice, diversity leader and COO Brook Sims talks powerful leadership, diverse teams and being a change agent

Best business books to improve leadership strategy

From strategic guides to inspiring CEO memoirs, these new books dish up plenty of principles, strategies, and anecdotes to help you become a better leader

Shoplazza founder and CEO Jeff Li, ex Baidu, on leadership

Named in Fortune China’s 40 under 40 for 2022, former Baidu head Jeff Li is the entrepreneurial founder and CEO of ecommerce platform Shoplazza

The office shifts to new way of working – workplace special

Leadership & Strategy

Trailblazer: Clorox's DEI leader Shanique Bonelli-Moore


The inspirational CEO story – Dean Forbes of Forterro

Leadership & Strategy