Virgin Money shareholders would own about 38pc of the merged company compared with 36.5pc in CYBG's previous approach and would retain dividends through the end of June, according to a statement. CYBG, formerly the British division of National Australia Bank, is proposing an all-stock transaction and is seeking greater scale and cost savings by acquiring Virgin Money's mortgage assets, branches, credit cards and savings accounts. It hopes to build scale to take on Britain's big high-street lenders. The "proposed combination would create the UK's first true national banking competitor," CYBG said. "Discussions are ongoing regarding other terms and conditions of the proposed combination and reciprocal due diligence is being conducted."

Source: Irish Independent June 05, 2018 01:30 UTC