Regulators green light Nationwide's £2.9bn Virgin Money takeover

Nationwide Building Society’s £2.9bn takeover of Virgin Money UK has received regulatory approval, it was announced on Friday.

Both the Financial Conduct Authority and the Bank of England’s Prudential Regulation Authority have backed the deal, an unusual takeover of a listed bank by a member-owned building society.

First announced in March, Nationwide chief executive Debbie Crosbie called it "an exciting opportunity to create a more diverse business that delivers even more value to our members and will strengthen Nationwide financially".

Virgin Money shareholders voted in favour in May. Nationwide members were not given a vote.

The Competition and Markets Authority backed the deal, which is being implemented under a scheme of arrangement, in July, leaving just regulatory approval to be cleared.

A court hearing to sanction the scheme will now take place towards the end of September, after which trading in Virgin Money’s shares will be suspended.

Its listings on the London Stock Exchange and Australian Securities Exchange will then be cancelled on 1 October, the effective date of the scheme.

Nationwide also confirmed on Friday plans to appoint Chris Rhodes chief executive of Virgin Money. Rhodes is standing down as chief financial officer of the building society with immediate effect, ahead of taking up the new role on 1 October.

He is being replaced by deputy chief financial officer Muir Mathieson.

Virgin Money chief executive David Duffy is retiring.