Nationwide take over of Virgin Money

SandyN21

I've got several savings accounts with Virgin Money plus credit and debit accounts.... will they be affected? 

https://news.sky.com/story/nationwide-agrees-terms-for-2-9bn-takeover-of-virgin-money-13088922

wmb194

Nationwide thinks it already has problems with creaking IT...

wmb194

Announcement here: https://www.londonstockexchange.com/news-article/VMUK/joint-statement-re-potential-cash-acquisition/16365721

Sounds like they will continue to be run as separate entities, at least for a while.

It says, "Integration: Nationwide would seek to integrate Virgin Money gradually over multiple years into the Nationwide group...  In the medium term, Virgin Money would continue to operate as a separate legal entity within the Nationwide group, with a separate board of directors and a separate banking licence. Nationwide intends that the combined group would retain the "Virgin Money" brand in the medium term, but has agreed with Virgin Enterprises ... that it would cease doing so over a six-year period from completion of the Potential Acquisition, by which point Nationwide would intend to have re-branded the Virgin Money business.

Customers: ...  Virgin Money customers would not automatically become members of Nationwide."

Aidanmc

https://www.nationwide.co.uk/news-and-stories/virgin-money/

Nationwide have a pop up when logging in

WillPS

https://www.bbc.co.uk/news/business-68499145

https://www.nationwide.co.uk/news-and-stories/virgin-money/

Little note on there for the moaners/diehard carpetbaggers who sniffed a whiff of demutualisation with last year's rebrand:

Importantly, Nationwide will remain a building society.

la531983

https://forums.moneysavingexpert.com/discussion/6511397/nationwide-take-over-of-virgin-money#latest

WillPS

la531983 said:

https://forums.moneysavingexpert.com/discussion/6511397/nationwide-take-over-of-virgin-money#latest

Thanks. Should be moved to this board in my view because it pertains to more than just Savings & Investment, it covers all general banking.

boingy

That one feels to have come out of the blue! For Nationwide that's a much better use of funds compared to giving money away.

Section62

boingy said:

That one feels to have come out of the blue! For Nationwide that's a much better use of funds compared to giving money away.

Have no fear, there's enough cash floating around to buy VirginMoney and still give money away.....

The Nationwide Board believes that the Potential Acquisition would create a combined group with enhanced financial strength, including through access to greater diversity of funding, notably from business deposits, and the opportunity to generate improved returns. Nationwide expects to be able to capitalise on this financial strength to support the continued provision of its 'Fairer Share Payment' to eligible Nationwide members....

Presumably the "notably from business deposits" is a reference to Nationwide's failed attempt to move into business banking, which they can get round by buying a bank that already has other activities up and running.

steven141

I wonder if this would affect the printing of Clydesdale Bank notes or if that would end. 

Section62

WillPS said:

Little note on there for the moaners/diehard carpetbaggers who sniffed a whiff of demutualisation with last year's rebrand:

Importantly, Nationwide will remain a building society.

The forum members who were commenting on Nationwide then are not "moaners".  As members of Nationwide, and of this forum, they are allowed to have a different opinion to you about the way Nationwide is managed, without having a derogatory label attached to them.

In terms of being a member of a mutual building society, note that the statement issued today says "Virgin Money customers would not automatically become members of Nationwide".  In fact (as predicted by some here IIRC) it looks like Nationwide may be planning to operate a 'bank' subsidiary as a separate entity.

Which means our mutual (which some of us feel means having some degree of equality in ownership and the benefits available) building society will then have three classes of 'membership'...  the 'eligible' members who get free cash as a result of luck (or gaming the system), members who help earn the money that pays the free cash but don't get it themselves, and the VirginMoney customers who won't be members at all (unless they also have Nationwide accounts).

Not 'demutualisation' - but a big departure from the mutual ethos if it happens.