M&A Monitor Ltd’s Post

Nationwide Building Society to acquire Virgin Money - Nationwide Building Society has agreed to purchase Virgin Money. The agreement would establish the second-biggest savings and mortgage group in the UK. This is set to be the largest takeover of a UK bank since the 2008 financial crisis would occur if the deal closes. Previously Northern Rock Bank was nationalised as a result of the financial crisis, and Virgin Money later acquired it in 2012. The two companies together would form a group with 696 branches. Clifford Chance and Slaughter and May, two Magic Circle firms, are leading Nationwide's £2.9 billion acquisition of Virgin Money. Following Barclays' announcement last month that it will acquire Tesco's retail banking division for £600 million, analysts predict additional takeovers in this industry are to follow. Source: https://lnkd.in/efXPuMyg #ABTL #uklawyers #lawstudents #aspiringlawyers #commercialawareness

Below is a sample of recent transactions completed by the Virgin Money Y&NE Strategic Finance Team evidencing our commitment to the market and I am delighted to have completed 2 of these transactions myself. We continue to grow the book and support local businesses and have a strong pipeline of deals that should complete in the upcoming months....#virginmoney #acquisitionfinance #corporatefinance

Nationwide has announced its plans to acquire Virgin Money in a £2.9 billion deal. If accepted by Virgin Money’s shareholders, this acquisition will reflects Nationwide's commitment to expanding its presence in the banking sector and enhancing its product offerings to better serve customers' needs. In this context the board of Virgin Money said it would be “minded” to recommend a firm offer if one was made. Sir Richard Branson’s Virgin Group, which owns a 14.5 per stake in Virgin Money, also indicated it would support a deal. If the deal is approved, Virgin Group’s stake would be worth more than £400mn. Nationwide, which has 18,000 employees, said the combined group would have assets of about £366bn and be the second-largest provider of mortgages and savings in the UK. The acquisition, it added, would give it “access to greater diversity of funding, notably from business deposits”. Benjamin Toms, an analyst at RBC Capital Markets, said the transaction would “potentially lead to increased competition in the UK mortgage and savings market” and increase the building society’s share of the mortgage market from 12.2 to 15.7 per cent. As we look ahead, the possibilities are endless! https://lnkd.in/eajz6yKc #Nationwide , #mergersandacquisition , #VirginMoney , #MnA , #Virgin , #VirginGroup, #FinancialServices , #Acquisition , #Market , #Cooperation , #CapitalMarkets , #Businessnews , #Investments

GBP Bonds: Britain’s Nationwide Merger & Acquisition of Virgin Money Nationwide Building Society's acquisition of Virgin Money Intermediaries UK for 2.9 billion pounds ($3.7 billion) signalling a strategic expansion to become the UK's second-largest savings and mortgage provider amidst a trend of banking consolidations.  Nationwide's asset size fell by a quarter, a move facilitated by its strong CET1 ratio 26.8%, which is among the highest in Europe. Such financial robustness is reflected by Nationwide's ability to offer a 38% premium on Virgin Money's share value as of March 6, funded from its existing reserves, showcasing market confidence as Virgin Money's shares surged by 36% following the announcement. Despite this market reaction, Nationwide's stock has moved to a stable 136.00 GBP, indicating investor stability and confidence in Nationwide's strategic direction. This merger, leveraging Nationwide's mutual status and Virgin Money's customer base, is set to reshape the UK banking sector with a focus on mutual ownership and enhanced customer service. CreditSights predicts that Nationwide's credit rating will stay stable, while Virgin Money's could rise slightly, post-acquisition. The effect on their current bonds is seen as minimal, overshadowed by Nationwide's anticipated expansion in funding, likely placing it just behind Lloyds Banking Group. Virgin Money's bonds, especially the £844m AT1 notes, have seen improved performance, closing the spread with Nationwide's. The £300m senior bond of Virgin Money also tightened significantly. Each bank holds a notable euro benchmark, with Virgin's set for potential gains, especially if its ratings approach Nationwide's. However, the continuation of Virgin Money as an independent brand is unclear, and restructuring its senior bonds may be necessary due to different resolution buffer approaches. At CANDOUR CAPITAL, we can offer the opportunity to access these bonds, particularly with Nationwide's expected capital-raising activities post-merger. If you're interested in accessing these potential bonds or wish to stay updated, please let us know. #fixedincome #investing #gbp #richardbranson

“We want more,” demands KBW. Analysts at the Stifel subsidiary were referring to Nationwide’s 218p (plus a 2p divi) per share surprise cash offer for Virgin Money at a £2.8 billion valuation. “We believe that this offer is inadequate for what is the leading quoted UK challenger bank,” analysts said of the offer that was first advanced in March. KBW acknowledged the enticing 38% premium to Virgin Money’s valuation at the time of advancing the offer, but added that it’s only an 11% premium to analysts’ pre-bid consensus target price. Nationwide may struggle to get the deal over the finishing line regardless, amid a growing shareholder revolt against the merger. Analysts at KBW suggested a 250p per share valuation on Virgin Money’s stock is no unreasonable “We believe that the current offer fails to reflect the unique opportunity offered by VMUK, and believe that the strategic and financial logic of the... More at #Proactive #ProactiveInvestors http://ow.ly/5tOE105pvTn

Under the UK Takeover Code, Nationwide has until 4 April to announce a firm offer for or walk from the transaction, unless an extension is agreed by the Virgin Money board. If completed, this will be the UK’s largest banking deal since the 2008 financial crisis.   This is a bittersweet milestone at the end of a longer saga that goes back to the financial crisis. It is bittersweet because challenger banks, like Virgin Money, were seen as a way of challenging the oligopoly in the UK retail banking world. The combination of Virgin Money and Nationwide, would make it the UK’s second largest provider of mortgages and savings in the UK, arguably this could be good for competition, but it will be interesting to see if the CMA would like to take a closer look. It is also bittersweet as this is another example of a UK listed company takeover, which has been a significant theme this year due to the combination of chronically undervalued stocks and sterling. There is a question over how much of a UK stock market we will have left in a couple of years’ time and what the quality of those names will be.   Mergermarket reported today that Virgin Money’s funding requirements were likely behind the timing of yesterday’s disclosure. Though the 2.4 announcement was relatively fully formed, key aspects such as Virgin Money's post deal board composition were not mentioned.   Subscribers can read more on our reporting on this situation by myself & Gabriele Rutkauskaite, and Gustav Sandstrom, as well as other trends in global M&A here: https://lnkd.in/eUbznZag. Chart credit from our excellent Morning Flash and data analysts Will Cain & Santosh Shetty.   #mergermarket #virginmoney #nationwide #takeover #listedcompany #banking #UK #mergersandacquisitions

The FTSE 100 dipped early on after a bullish post-budget performance on Wednesday. Grabbing headlines was Nationwide, which unveiled a deal to take over Virgin Money in a move which would create a group with combined assets of £366.3 billion. Elsewhere, Aviva shares jumped in early trading after the insurer unveiled a 9% increase in full-year pre-tax profit to £1.47 billion and hiked its dividend by 8% to 33.4p. ITV also enjoyed a strong start, after announcing solid growth in its production and streaming wings had largely offset a wider downturn in advertising spend last year. And finally, Halifax said 2024 had so far brought relative stability for the housing market, as the lender reported prices had climbed by 1.7% in February. Watch at #Proactive #ProactiveInvestors https://lnkd.in/eghNB_yM

To my connections in the Liverpool, Leeds and Sheffield areas; We are a direct partner with Faster Britain, an alternative network provider funded by Aviva.  Faster Britain are an alternative supplier, providing full fibre gigabit connectivity in the UK. They have partnered with a number of Councils to bring Full Fibre Connectivity to the area.  Leeds and Sheffield are now enabled area’s giving full fibre and access to ultrafast connectivity, supporting cloud-enabled and future proof technologies. Unlike these other providers, by re-using existing infrastructure, Faster Britain connectivity can be deployed faster because we minimize disruption through intrusive, and often prolonged, digs. We can offer significant savings on broadband and leased line spend and can often deliver in 20-40 working days, as opposed to others who are currently quoting up to 120 working days. 

As we welcome the new financial year, we reflect on the accomplishments of the RWC group over the last 12 months. During that time we had a brand refresh with a new name and look, gained success on commercial auctions, and onboarded new offices. Read the latest 'End of Financial Year Market Update' with Head of RWC, James Linacre here: https://lnkd.in/g322wjX2 #RWC #EOFY #MarketUpdate #RayWhite

𝐁𝐫𝐢𝐭𝐢𝐬𝐡 𝐭𝐲𝐜𝐨𝐨𝐧 𝐑𝐢𝐜𝐡𝐚𝐫𝐝 𝐁𝐫𝐚𝐧𝐬𝐨𝐧 𝐭𝐨 𝐆𝐚𝐢𝐧 𝐚 $𝟑𝟐𝟎 𝐦𝐢𝐥𝐥𝐢𝐨𝐧 𝐖𝐢𝐧𝐝𝐟𝐚𝐥𝐥 𝐟𝐫𝐨𝐦 𝐚𝐧 𝐨𝐛𝐬𝐜𝐮𝐫𝐞 𝐞𝐱𝐢𝐭 𝐟𝐞𝐞 𝐨𝐟 𝐕𝐢𝐫𝐠𝐢𝐧 𝐌𝐨𝐧𝐞𝐲 𝐛𝐫𝐚𝐧𝐝 𝐃𝐞𝐚𝐥 Sir Richard Branson is poised to garner over £650 million from a possible acquisition of his challenger bank, Virgin Money, by Nationwide, according to estimates. Read More: https://bityl.co/Ohfo #britishtycoon #RichardBranson #windfall #VirginMoney #news #NewsUpdate #BusinessNews #newsdaily #businessnewsdaily