Clydesdale and Yorkshire Bank owner CYBG (LON:CYBG) has announced that it has made an approved all-share offer for Virgin Money (LON:VM.). Under the terms of the agreement, Virgin Money shareholders will receive 1.2125 shares in the new CYBG for each Virgin Money share they hold, which values the company at £1.7 billion.
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Management believe that the combination of the companies would allow the creation of a national outfit of sufficient scale to rival the incumbent banks as well as offering £120 million in annual pre-tax cost synergies from the start, with additional savings coming over time. Shares in the company were 302.60p at 12:45 BST, down 1.18% from this morning’s open.