Major update as Nationwide's £2.9bn takeover of Virgin Money to go ahead in weeks

Nationwide's £2.9billion takeover of rival Virgin Money is expected to be completed next month after the UK's financial regulators gave the deal the green light.

The lenders announced in a statement to the stock market that the Financial Conduct Authority (FCA) and the Bank of England's Prudential Regulation Authority (PRA) have approved the acquisition.

This follows the building society's agreement in March to acquire its London-listed competitor.

Nationwide secured the deal with a 220p-per-share offer for Virgin Money, which includes a proposed 2p-per-share dividend payout.

The acquisition will merge the UK's fifth and sixth largest retail lenders, forming a combined entity with approximately 24.5 million customers, over 25,000 employees, and nearly 700 branches.

However, the move is expected to eventually phase out the Virgin Money brand, with Nationwide planning to rebrand the Virgin Money business under its own name within six years, though both brands will be maintained initially.

On Friday, the banks announced that "all relevant regulatory approvals have now been received" to proceed with the deal after it was approved by the UK's Competition and Markets Authority (CMA) in July.

The deal still requires court approval, with a hearing scheduled for September 27.

As a result, the deal is anticipated to be finalised on October 1, according to the banks.