Nationwide Building Society set to acquire Virgin Money UK for 2.9 billion pounds in an all-cash transaction.

The offer price of 220 pence per share is a 38% premium over Virgin Money's current share value.

The acquisition will utilize Nationwide's existing cash reserves to fund the deal.

The merger aims to enhance competition in the savings and mortgage sectors, potentially triggering more industry consolidation.

Combined assets of the new entity would total approximately 366.3 billion pounds, solidifying it as the country's second-largest savings and mortgage provider.

Nationwide's product and service range will expand, potentially offering customers more options.

Expected benefits include promoting fairer banking and expanding mutual ownership within the UK financial landscape.

The deal signifies a transformative shift in the UK banking industry and is anticipated to substantially influence the market.