Yorkshire Bank owner improves Virgin Money offer to create “the UK’s first true national banking competitor”

CYBG
CYBG

The owner of Yorkshire Bank has sweetned its £1.6bn offer to buy Virgin Money offering shareholders greater ownership of the newly merged business.

Under the new terms, Virgin Money shareholders would own 38 per cent of the new merged business instead of 36 per cent.

CYBG and Virgin Money said the move would create “the UK’s first true national banking competitor” as an alternative to the incumbent banks.

It would be the UK’s fifth largest bank with six million personal and business customers and a balance sheet of £70bn.

CYBG has said it will keep the Virgin Money brand, subject to an agreement with Richard Branson’s Virgin Group.

The proposals would also see improved efficiencies across the business.

CYBG CEO David Duffy'Pic Peter Devlin

CYBG CEO David Duffy'Pic Peter Devlin

Virgin Money, which was founded in 1995, expanded its business in 2011 when it bought the remnants of Northern Rock for about £747m.