The planned £1.7bn merger of Virgin Money Holdings PLC (LONVM) and CYBG PLC (LON:CYBG) has been approved by the Financial Conduct Authority and the Prudential Regulation Authority.
CYBG, the owner of Clydesdale Bank and Yorkshire Bank, announced an all-share offer to buy Virgin Money in June.
Virgin Money shareholders will receive 1.2125 new CYBG shares for every Virgin Money share held and will own about 38% of the merged business.
READ: CYBG trading meets estimates, lender to complete Virgin Money takeover by year-end
CYBG said on Thursday that shares to Virgin Money will be issued by October 15 when they begin trading on the London Stock Exchange.
The offer is being implemented by means of a scheme of arrangement to be sanctioned by the court. A court hearing is set to take place on October 12. If approved, the scheme is expected to become effective on October 15.
Shareholders of CYBG and Virgin Money approved the merger last month.