While Nationwide will not offer its members a vote on the deal, it still requires approval from Virgin Money shareholders. If shareholder approval goes through Virgin Money’s chief executive, David Duffy, who is supporting the deal alongside the banks other bosses, will resign. 

He is poised to receive £3.5 million from the buyout of his approximately 1.6 million shares.

A successful deal will also see Sir Richard Branson receive £700m as Virgin Money’s largest investor – £310m for the use of the Virgin Money brand and £414m from the buyout of his 14.5% stake. He has indicated his support for the deal.

As part of its longer-term integration strategy, Nationwide intends for the Virgin Money business to rebrand over time, paying £15m in annual royalties for the first four years and a £250m exit fee.

Although Nationwide has said that there will be no “material changes” to Virgin Money’s staff base of 7,300 in the first year after the takeover, it will initiate a review after the deal completes, which will see “limited workforce changes” to consolidate overlapping roles.

The bank’s “branch promise” – pledging to keep open all of its existing branches until at least 2028 (extended from the previous pledge of 2026) – will also include Virgin Money branches.

Debbie Crosbie, Nationwide’s chief executive, said: “This acquisition strengthens Nationwide and means we can offer more value and broader services for our current and future members. More people will experience the benefits of mutual ownership and the customer-focused approach of a building society.”

Kevin Parry, chairman of Nationwide, added: “Following full consideration and the appropriate due diligence, and after taking comments from members into account, the board of Nationwide’s assessment is that the binding offer to acquire Virgin Money is in the best interests of the society and its present and future members.”

The joint statement by the boards of Nationwide and Virgin Money has confirmed that the agreed offer price is a total of 220p per Virgin Money share.

Nationwide has also confirmed that its chief financial officer, Chris Rhodes, will become the CEO of Virgin Money once the acquisition is complete and Virgin Money’s current CEO steps down. Muir Mathieson, Nationwide’s deputy CFO and treasurer, will become CFO of Nationwide. Both appointments are subject to regulatory approval and will report directly into Ms Crosbie.