Virgin Money buys Northern Rock

by Aaron Strutt

Nov 18 2011

Northern Rock has been sold to Richard Branson's Virgin Money in a deal worth £747 million, which could rise to more than £1 billion. The deal is subject to regulatory and EU merger approval and completion is expected on 1 January 2012.

The acquisition is going to include: 75 Northern Rock branches and 2,100 employees, one million customers, a £14 billion mortgage book and a £16 billion retail deposit book.

The acquisition is funded by an investment consortium led by Virgin Group and WL Ross & Co. The company will be rebranded to Virgin Money and there will be no compulsory redundancies for at least three-years.

Sir Richard Branson, Founder of Virgin Group, said: “Banking in the UK needs some fresh ideas and an injection of new competition. I'm delighted we will get the chance to work with the loyal staff of Northern Rock to create a new force in the market. Virgin has a history of entering new sectors to improve service and provide value for customers. We plan to do the same for banking.”

18 November 2011