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18 June 2018 Business

Image copyrightREUTERS Virgin Money branch
The owner of Clydesdale Bank and Yorkshire Bank, CYBG, has agreed to buy Virgin Money for £1.7bn.

Under the deal, all the group’s retail customers will be moved to Virgin Money over the next three years.

It will be the UK’s sixth-largest bank, with about six million customers, but 1,500 jobs are likely to go.

CYBG said it had agreed with Sir Richard Branson’s Virgin Group to license the Virgin Money brand for £12m a year, rising to £15m later.

Virgin Group is Virgin Money’s biggest shareholder with a 34.8% stake in the business.

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Under the terms of the deal, Virgin Money shareholders will get 1.2125 new CYBG shares for every Virgin Money share they hold, and will end up owning about 38% of the combined business.

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