The UK’s Competition and Markets Authority (CMA) has announced that it is considering an investigation into Nationwide’s proposed merger with Virgin Money.
In March, Nationwide confirmed its offer to acquire Virgin Money UK, agreeing to the terms of a cash offer of £2.9 billion with Virgin Money’s Board. The deal is expected to close in the fourth quarter of the year, potentially creating the UK’s second-largest savings and mortgage provider after Lloyds.
The CMA is examining whether this merger could lead to a “substantial lessening of competition within any market or markets in the United Kingdom for goods or services.” The regulatory body is calling for comments on the transaction from interested parties and will announce its decision on whether to continue its investigation on July 26, 2024.
This development comes amid Nationwide facing recent scrutiny after its advertisement promoting its branch promise was removed for incorrectly suggesting the building society was not closing branches.
