Nationwide is to buy high-street banking rival Virgin Money in a deal worth nearly £3billion.
In what's the biggest banking deal since the 2008 financial crisis, the combined group would be worth £366billion in total assets, with nearly 700 branches and more than 23 million customers.
A preliminary agreement has been reached by the two lenders, solidifying Nationwide's position as the UK's second largest mortgage lender, should the deal be approved.
Virgin Money bought Northern Rock bank in 2012, before itself being bought by the Clydesdale and Yorkshire bank group CYBG in 2018.
Its current branches are to remain until at least 2026, according to Nationwide, however pre-planned closures by Virgin Money will go ahead. Nationwide added that no material changes will be made to Virgin's 7,300 employees "in the near term".
Nationwide CEO Debbie Crosbie said: "A combined group would bring the benefits of fairer banking and mutual ownership to more people in the UK, including our continuing commitment to retain existing branches."
The merger comes a month after Barclays announced it would buy the banking operations of Tesco for around £600million.
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