UK bank led by ex-AIB boss David Duffy to be taken over in €3.4bn deal

Nationwide, Britain’s biggest building society, reaches deal to buy Virgin Money UK to create home-loan giant

Virgin Money boss David Duffy. Photo: Bloomberg

Leonard Kehnscherper and Tom Metcalf

Nationwide Building Society has reached a preliminary agreement to buy Virgin Money UK for £2.9bn (€3.39bn) in a deal that raises the stakes for consolidation among Britain’s mid-sized lenders.

Virgin Money, which was created by a string of mergers, has been struggling to compete with the UK’s “big four” banks that dominate accounts and mortgages.