Virgin Money Buy Northern Rock for £750 Million

News just in that Virgin Money has bought Northern Rock for £750 million. This means that Richard Branson is now a high street banking tycoon. Virgin Money have only bought the “good bank”, the government will keep the bad debts / “bad bank”.

George Osbourne said that the deal will be a good thing for British tax payers and families as it will provide renewed competition.

The headquarters for Virgin Money is also in Newcastle which will ensure that many if not all jobs will remain in Newcastle, certainly good news for employees and families.

At a time when some European banks could be at risk of nationalisation a British bank is being returned to the private sector.

The Government have still made a significant loss on this deal, having paid over £4 billion for the bank to save client investments.

Virgin Money currently specialise in home insurance, credit cards, pre-paid travel money cards, pensions, insurance and savings. This is certainly an exciting move for Virgin.

George Osbourne and the coalition government may have made a huge loss on the deal but it is thought that this is the best deal possible for the tax payer.

Northern Rock customers will be able to maintain their accounts, the rebranding of Northern Rock to Virgin Money will start in January 2012.

  5 comments for “Virgin Money Buy Northern Rock for £750 Million

  1. shirl
    November 17, 2011 at 12:04 pm

    Thanks SHP

  2. SHP
    November 17, 2011 at 11:18 am

    Not sure yet, but in 2008 the “shares of Northern Rock plc were transferred into temporary public ownership”. Hopefully the deal includes returning shares or cash to shareholders, however, we are still waiting for an update on this.

  3. shirl
    November 17, 2011 at 11:07 am

    what will happen to northern rock shares already got? I know they are N/A at the moment but will they go back on the stock market or will they be permanently gone?…thanks.

  4. SHP
    November 17, 2011 at 10:12 am

    “We are ready to shake up the banking market with a fresh approach and some Virgin style.” Richard Branson

  5. SHP
    November 17, 2011 at 10:11 am

    Richard Branson has just provided an update on his own blog. Richard mentions how proud he is of Jayne-Anne and her management team who have spent the last 4 years working on this deal.

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