Nationwide Building Society has moved another step closer to acquiring Virgin Money after Nationwide’s board make a binding offer.

In the latest update, Nationwide’s board has made a binding offer that Virgin Money’s directors intend to recommend be accepted by their shareholders.

The integration of the two businesses will take place over several years.

This comes after the board decided the acquisition offers compelling benefits for Nationwide’s current and future members.

It was reported earlier that Nationwide Building Society is set to take over smaller rival Virgin Money in a deal worth around £2.9 billion.

Nationwide said in a statement: “This acquisition will strengthen Nationwide financially and presents an opportunity to accelerate our strategy. 

“It delivers greater value for our members and broadens the range of services we offer to include those that many members have requested.”

These include an increase in the size of the Group’s branch network, alongside a promise that no current Nationwide branch will close before at least the start of 2028.

They reassured current customers, saying: “The Board remains wholly committed to remaining a building society and a modern mutual that meets more of its customers’ and members’ banking needs. 

“All customers will become part of a combined group with a clear focus on providing simply brilliant service to its customers.”