CLYDESDALE Bank owner CYBG’s proposed £1.7 billion takeover of Virgin Money has been rubber-stamped by investors in the two institutions.
Bosses a CYBG say the all-share merger, first announced in May, will create a force capable of taking on the UK’s major high street banks.
But it will result in 1,500 job losses as the banks are brought together, as well as the gradual phasing out of the Clydesdale Bank name – a fixture in Scottish banking since 1838. It will ultimately be usurped by the Virgin brand. The job cuts will come as the merged bank bids to make annual savings of £120 million by the end of the third year after the merger completes.
Shareholders in Virgin Money, which will hold 38 per cent of the combined bank, and CYBG voted in favour of the deal yesterday.
Jayne-Anne Ghadia, chief executive of Virgin Money, who will ultimately leave the bank, said: “I am delighted with the support from our shareholder base in approving the recommended all-share offer for Virgin Money by CYBG. Bringing together the complementary strengths of Virgin Money and CYBG will create the UK’s first true national competitor in UK banking, improving competition and choice for all UK consumers, while enabling the Virgin Money franchise to continue to flourish.”
Shares in CYBG climbed up 2p, closing at 334.2p.
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