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Merger approved

CYBG-Virgin shares ready to trade after City backing

Virgin Money flag 2Shares in the new Clydesdale-Virgin bank will begin trading on 15 October after the merger received approval from the City regulators.

The combination of Clydesdale parent CYBG and Virgin Money was agreed on 18 June via an all-share offer which was backed by both sets of shareholders on 10 September.

The Financial Conduct Authority and the Prudential Regulation Authority approved the merger yesterday.

Combining the two FTSE 250 lenders will create a bank with six million customers, £83 billion of assets and sufficient capital to mount a challenge against the bigger banks.

Analysts say it will have a capital buffer of about 12% and expect it to pursue other takeovers once the merger has settled down.

David Duffy is the CEO of the new bank which will be headquartered in Glasgow where a new head office is planned in Bothwell Street.

It will rebrand as Virgin Money over three years after striking a £15m a year licence deal with Virgin founder Sir Richard Branson.


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