VIRGIN MOVES: The deal will create Britain’s sixth-largest bank by assets, about around twice the size of its largest rival among the smaller banks, and with the firepower of the Virgin brand, which the combined group will pay a royalty to keep. Picture: BLOOMBERG/CHRIS RATCLIFFE
VIRGIN MOVES: The deal will create Britain’s sixth-largest bank by assets, about around twice the size of its largest rival among the smaller banks, and with the firepower of the Virgin brand, which the combined group will pay a royalty to keep. Picture: BLOOMBERG/CHRIS RATCLIFFE

Banking on success

Midsized bank CYBG has agreed a £1.7bn all-share deal to acquire Virgin Money, which it says will create the UK’s sixth-largest bank and challenge the country’s top four lenders.

Through the deal, on the same terms as CYBG’s sweetened bid in June, Virgin Money shareholders will receive 1.2125 CYBG shares per Virgin Money share and own about 38% of the combined group. Richard Branson owns about 35% of Virgin Money.

Google’s logo is reflected in a nearby building in Irvine, California. Picture: REUTERS
Google’s logo is reflected in a nearby building in Irvine, California. Picture: REUTERS

Google looks east

US Internet giant Google will invest US$550m in Chinese e-commerce powerhouse JD.com as part of its effort to expand its presence in fast-growing Asian markets and battle rivals, including Amazon. The companies describe the investment as one piece of a broader partnership that will include the promotion of JD.com products on Google’s shopping service. This could help JD.com expand to establish a meaningful presence in the US and European markets.

Company officials say the agreement will initially not involve any major new Google initiatives in China, where the firm’s main services are blocked because it refuses to censor search results.

Reuters

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