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

Musk’s multibillion hostile Twitter takeover – the timeline

As billionaire entrepreneur Elon Musk buys Twitter for US$44bn, we draw up a timeline, from the buying of shares to the critical tweets and unsolicited bid

Sustainable moves businesses can make to win customers, IBM

With half of consumers saying environmental sustainability is more important today than a year ago, businesses should up their eco action, says IBM report

Banks and consultancies top workplaces to grow career in UK

Financial and professional services firms rank highest in LinkedIn Top 25 best workplaces list – from Barclays, Lloyds and HSBC, to PwC, Deloitte and EY

Top 10 women in technology in Europe

Leadership & Strategy

The value of ESG links sustainability to business returns


Top 10 European football clubs by revenue 2022 – Deloitte

Corporate Finance