Nationwide to buy Virgin Money in £2.9bn deal

Nationwide Building Society has agreed to buy Virgin Money in a deal that values its high street rival at nearly £3bn and would create the second-largest provider of mortgages and savings in the UK.

The two lenders have reached a preliminary agreement on the key terms of a deal, which would create a new competitor with £366bn in total assets, according to a joint statement released on Thursday morning.

The proposed £2.9bn deal offers Virgin Money shareholders 220p a share and represents a…