Britain's competition regulator starts probe into Nationwide-Virgin Money deal (updated)

Virgin Money UK

31/05/2024 07:37

(Updates to add paragraphs 2-9 with detail about the inquiry
and context on the deal)
       May 31 (Reuters) - Britain's competition regulator said
on Friday it had started a probe into Nationwide Building
Society's  NBS.L  proposed 2.9 billion pound ($3.69 billion)
all-cash deal to buy Virgin Money UK  VMUK.L .
    The deal, which was announced in March, could create the
country's second-largest savings and mortgage provider.
    The Competition and Markets Authority (CMA) said it was
considering whether the deal could result in a "substantial
lessening of competition" in the UK.
    The CMA said the notice on the launch of its inquiry had
been sent to the parties, and the regulator has a deadline of 40
days for its Phase 1 decision.
    The CMA also invited comments from any interested parties on
the transaction by June 14.
        Nationwide is the UK's third largest mortgage provider
and holds almost 1 in every 10 pounds saved in the UK, as well
as one in 10 of the UK’s current accounts. It describes itself
as the world's largest building society.
  
        Virgin Money is the UK's sixth-largest retail bank by
assets and has around 6.6 million customers.
  
        Responding to the deal's announcement in March, analysts
said that the transaction could increase competition in
Britain's mortgage and savings market and spur a revival in some
bank stocks, which have wilted in the face of geopolitical
tensions and lacklustre economic growth.
  

($1 = 0.7862 pounds)

 (Reporting by Aby Jose Koilparambil in Bengaluru and Elizabeth
Howcroft in London; Editing by Rashmi Aich and Amanda Cooper)
 ((abyjose.koilparambil@thomsonreuters.com))