The owner of Clydesdale and Yorkshire Bank CYBG has approached Virgin Money with a proposed full-share takeover, valuing the firm at £1.6bn.
CYBG said that, if the merger were to go through, it would create a “genuine alternative” to the UK’s largest banks.
The proposal was confirmed by both parties last night, and the offer would see Virgin Money shareholders receive 1.1297 new CYBG shares for each Virgin share.
Virgin Money’s board has yet to review the proposal, though the company has already said that there was “no certainty” that an offer will be made.
Following the UK’s takeover rules, CYBG must now make a firm offer or retract its interest by 4 June. The proposal comes following the announcement of strong first-quarter results by the company, boasting good credit sales and a 0.5 per cent mortgage growth.
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