Regulators clear CYBG takeover of Virgin Money

Regulators have cleared banking group CYBG's £1.7bn takeover of Virgin Money.

CYBG, which owns the Clydesdale and Yorkshire banks, confirmed that the Financial Conduct Authority and the Prudential Regulation Authority had approved the transaction.

Investors in both firms voted overwhelmingly in favour of the all-share deal last month.

The combined group, which will have about six million customers, will be headquartered in Glasgow.

It will rebrand as Virgin Money.

CYBG's David Duffy will stay on as chief executive, with Virgin Money boss Jayne-Anne Gadhia serving in a consultancy role as his senior adviser.

Under the deal, all the group's retail customers will be moved to Virgin Money over the next three years, creating the UK's sixth-largest bank.

The combined group will have about 9,500 employees, although CYBG has said it intends to reduce that total by about a sixth.

CYBG has also said that the takeover will create the UK's "first true national competitor to the large incumbent banks".