The Competition & Markets Authority (CMA) has launched an investigation into Nationwide Building Society’s £2.9 billion takeover of Virgin Money.
Nationwide’s surprise bid for the bank announced in March has already proved controversial, with some Nationwide members staging a revolt over the deal, while analysts consider the 220p-per-share offer opportunistic.
Now, the CMA is considering whether the merger “will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”
The regulator is calling for comments from the public, with a window open until 24 June.