Major changes to Virgin Money and Nationwide are coming despite thousands of protests

Virgin Money shareholders have voted for a nationwide takeover by a huge majority. The deal won the approval of 89% of voting shareholders, lining up owner Richard Branson for a windfall of £724m from the sale.

The takeover deal will be the biggest in the banking sector since the financial crisis of 2008. Just over 89% of shareholders with voting rights said yes to the deal at Wednesday’s general meeting, while almost 11% rejected the decision.

The resolution required at least 75% support to pass. The shareholder vote now means Virgin and Nationwide need formal approval from City regulators, the Financial Conduct Authority and the Prudential Regulation Authority.

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Lenders will also need the approval of the Competition and Markets Authority. More than 4,700 people have signed a petition calling on Nationwide – a building society owned by its customers, who are known as members – to let them vote on the decision to buy the rival lender.

Nationwide made a formal offer to buy Virgin Money in March 2024. A Nationwide spokesman said: “The purchase of Virgin Money will make Nationwide a stronger building society, ensuring it can offer mortgages and installments better savings compared to the market average and will expand its products and Services.

“Nationwide has also undertaken several surveys of its members, reaching over 10,000 people, showing that only a very small number view the business negatively. in the interest of current and future members.”

But signing the petition, one customer said: “I signed this petition because Nationwide decided to spend £2.9 billion of our money on something that seems pointless when they could be offering better savings rates, mortgage rates smaller or (extend) annual memberships. bonus for all loyal members…”