Home / Business and Economy / Virgin Money Takeover Faces High Court Challenge
Virgin Money Takeover Faces High Court Challenge
15 Feb
Summary
- Nationwide's £2.9 billion Virgin Money takeover is facing a High Court challenge.
- Opponents cite potential costs to 16 million members from Virgin Money's loan unit.
- A hearing on February 24, 2025, will approve the legal transfer of Virgin Money.
A significant legal challenge is set to occur in the High Court on February 24, 2025, concerning Nationwide's £2.9 billion acquisition of Virgin Money. Campaigners are raising concerns that the 16 million members of Nationwide could face substantial costs stemming from Virgin Money's Clydesdale Bank operations.
These concerns are linked to allegations that 'tailored business loans' were mis-sold between 2001 and 2012, leaving customers financially vulnerable when interest rates dropped. A previous £400 million claim against Clydesdale and its former owner was dismissed by a judge in 2024. Despite this, a new claim is being prepared.
While the court hearing on February 24, 2025, is primarily to approve the legal transfer of Virgin Money to Nationwide, customers of either institution can formally object. A Nationwide spokesman stated that the £2.3 billion gain from the deal is expected to enhance member value.
