Image copyright Newscast
The proprietor of Clydesdale Bank and Yorkshire Bank, CYBG, has agreed to purchase Virgin Money for £1.7bn.
Under the phrases of the deal, Virgin Money shareholders will get 1.2125 new CYBG shares for each Virgin Money share they maintain.
CYBG mentioned the brand new agency could be a main pressure in banking, "disrupting the status quo and championing customer service excellence".
It would be the UK's sixth largest bank, with six million prospects.
CYBG has mentioned it is going to preserve the Virgin Money model, topic to an settlement with Sir Richard Branson's Virgin Group.
Virgin Money, which was based in 1995, expanded its enterprise in 2011 when it bought the remts of Northern Rock for about £747m.
CYBG
- 2.8 million prospects
- 169 branches
- £2.6bn market capitalisation
Virgin Money
- three.3 million prospects
- 74 branches
- £1.5bn market capitalisation
CYBG mentioned the takeover would "bring together the complementary strengths of two successful challenger banks to create the UK's first true national competitor to the large incumbent banks".
Its chief govt, David Duffy, informed the BBC's Today programme: "We're going to become a competitor of scale."
He also stated that "technology and agility" had been the components that may resolve the way forward for banking.
"I think we have sufficient scalethe brands, the product and the technology," he mentioned.
"We can be agile enough to deliver a much better deal for the customer."