Nationwide has agreed the terms of a £2.9 billion deal to buy Virgin Money.

On Thursday the building society's chairman Kevin Parry said that after full consideration and taking member comments into account, the board feels that the move is in the best interests of the organisation

Nationwide says that if the buyout goes through it will create a "financially stronger" building society, with savings and lending rates that will, on average, be better than the market average.

The merged companies would create a group with total assets worth £366 billion, which they say would make the combined business the second largest provider of mortgages and savings in the UK.

Nationwide chief executive Debbie Crosbie said that takeover would add more value and broader services for its customers.

“More people will experience the benefits of mutual ownership and the customer-focused approach of a building society,” she continued.

Nationwide also announced on Thursday that it will be extending its branch promise by another two years, pledging to keep its branches open until at least the start of 2028.

If the aquisition is successful, the promise will also apply to Virgin Money branches following any existing plans for closures.

Nationwide confirmed that its chief financial officer (CFO), Chris Rhodes, would become the chief executive of Virgin Money once the acquisition is complete and Virgin Money’s current chief executive retires.

Muir Mathieson, Nationwide’s deputy CFO and treasurer, will become CFO of Nationwide.

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