New Nationwide and Virgin Money warning issued after takeover

Advice has been issued on behalf of Martin Lewis' website

Nationwide's £2.9 billion acquisition of rival Virgin Money has been finalised. The deal was given the green light by a judge on September 27, with lawyers for both lenders securing approval at a specialist companies court in London.

The takeover officially came into effect on October 1, following Nationwide's agreement to acquire its London-listed competitor back in March. The building society sealed the deal with an offer of 220p per share for Virgin Money, which included a 2p-per-share dividend payout.

Judge Sir Anthony Mann expressed his satisfaction that all legal requirements had been met at the conclusion of a brief hearing. It was revealed that 90% of shareholders who voted at a meeting in May supported the scheme.

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In response to the takeover news, Martin Lewis's MoneySavingExpert provided advice to its readers, confirming that there would be no immediate changes for new or existing customers of either brand. However, it was noted that Virgin Money customers may eventually be transferred to Nationwide.

According to MSE, this transfer won't take place for at least a year, and it remains unclear which customers will be moved and what the transfer process will involve. Earlier this month, both lenders informed the stock market that the Financial Conduct Authority and the Bank of England's Prudential Regulation Authority had approved the takeover, reports the Liverpool Echo.

The agreement will merge the UK's fifth and sixth largest retail lenders, forming a combined group with approximately 24.5 million customers, over 25,000 employees and nearly 700 branches. However, this move is expected to eventually lead to the disappearance of the Virgin Money brand.

Nationwide plans to rebrand the Virgin Money business as Nationwide within six years, although it will initially maintain the two brands.