Virgin Money to acquire Northern Rock
A deal has been agreed that will see Virgin Money restore Northern Bank to the private sector.
Virgin Money has announced a landmark deal that will see it acquire Northern Rock.
The agreement is valued at £747 million - which will go to the government after it bailed out the bank in 2008 - and is subject to regulatory and EU merger approval.
A series of negotiations strategies will have been used to thrash out the final terms of the agreement, which will see Virgin take over Northern Rock's 17 branches and one million customers.
The former has stated the lending institution will be "highly liquid" and "strongly capitalised" once the transaction has been complete.
Jayne-Anne Gadhia, chief executive officer at Virgin Money - established as a joint venture between the Virgin Group and Norwich Union in 1995 - stated: "We plan to create a major new competitor in UK retail banking."
Ron Sandler, Northern Rock executive chairman, added he was glad to see the bank returned to the private sector.
Posted by Edel Quinn
Source: Virgin Money press release, November 17th