Nationwide Agrees Terms With Virgin Money on £3 Billion Deal

Nationwide Building Society has agreed to purchase Virgin Money UK Plc for £2.9 billion ($3.7 billion) in a cash deal that is set to reshape Britain’s banking landscape.

Shareholders of Virgin Money, which was created by a string of mergers, will receive 220 pence per share from Nationwide — 218 pence in cash and 2 pence in proposed dividend, according to a filing on Thursday, confirming a preliminary agreement announced earlier this month.

Virgin Money’s board has recommended accepting the offer and the acquisition is expected to conclude in the fourth quarter.

Virgin Money has been struggling to compete with ...