London — Mid-sized bank CYBG has agreed to buy Virgin Money in a £1.7bn all-share deal that it said will create Britain’s sixth-largest bank by assets and a stronger challenger to the country’s top four lenders. Britain’s biggest bank merger since the financial crisis was clinched by June’s month’s sweetened bid from CYBG and will give Virgin Money shareholders, which include entrepreneur Richard Branson, about 38% of the combined group. The merged company will be about twice the size of its largest rival among Britain’s smaller banks and be able to draw on the firepower of the Virgin brand, for which it will pay a royalty. CYBG CEO David Duffy will lead the enlarged lender, with Virgin Money CEO Jayne-Anne Ghadia acting as a senior adviser for an unspecified period, as it throws down the gauntlet to the sector’s big guns. "The combination of CYBG and Virgin Money will create the first true national competitor to the status quo in UK banking, offering a genuine alternative for consu...
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