Nationwide’s Virgin Money deal heads to court docket

A last-ditch bid to block Nationwide’s controversial takeover of rival Virgin Money will be made in the High Court later this month.

Opponents of the £2.9 billion deal fear 16 million members may be on the hook for substantial costs that may be lurking in Virgin Money’s Clydesdale Bank unit.

Campaigners argue that before Clydesdale became part of Virgin Money, they lost fortunes after taking out fixed-rate business loans, which left them out of pocket when interest rates plummeted after the financial crisis.

Takeover test: Nationwide boss Debbie Crosbie, with Prime Minister Keir Starmer

The issue is a sensitive one for Nationwide boss Debbie Crosbie, who rose through the ranks to become a senior Clydesdale executive when the ‘tailored business loans’ were sold between 2001 and 2012.

In 2024, a judge dismissed a £400 million claim that Clydesdale and former owner National Australia Bank mis-sold the loans by charging customers unfair break fees. 

But John Glare, who led a campaign against Clydesdale, plans to issue another claim alleging the loans were fraudulently sold as straightforward fixed-rate products.

The court hearing next Monday is to approve the legal transfer of Virgin Money to Nationwide.

Customers of either Nationwide or Virgin Money can object to the High Court, but very few have, a Nationwide spokesman said.

The spokesman added: ‘The £2.3billion gain from the [Virgin Money] deal enabled us to deliver greater value to members.’