Nationwide agrees £2.9bn deal to take over Virgin Money

Richard Branson has already indicated he will back takeover that will require the agreement of the group’s shareholders

Nationwide Building Society is set to tale over its smaller rival Virgin Money after the pair formally agreed to a deal worth £2.9bn.

The deal, which will solidify Nationwide’s position as the UK’s second largest mortgage lender, will also trigger the resignation of Virgin Money boss David Duffy, and is likely to lead to job cuts as well as an official “review” of the combined group’s workforce.