CYBG has wrapped up the acquisition of Virgin Money, leading to the creation of the sixth largest bank in the UK.

The all-share deal, valued at £1.7bn ($2.2bn), was first announced in June this year.

The combined group will be double the size of any other challenger bank, comprising £84bn in assets, and will tend to six million customers.

According to CYBG, the deal will generate pre-tax cost synergies of £120m by the end of September 2021.

Virgin Money takeover

As part of the changes, the Clydesdale and Yorkshire bank brands will be ditched in favour of the Virgin Money brand. The merged entity will utilise CYBG’s iB technology platform.

CYBG CEO David Duffy and CFO Ian Smith will lead the combined group in their existing roles. Virgin Money CEO Jayne-Anne Gadhia will step down and will serve as senior adviser to Duffy for a maximum period of 18 months.

Other CYBG leadership team members will retain their existing positions and will be supported by Peter Bole and Hugh Chater from the Virgin Money executive team.

Virgin Money CFO Peter Bole will now become the group integration director. In this role, he will manage the delivery of the integration programme across the two firms.

Commenting on the merger, Duffy said: “Today marks an historic milestone for CYBG and Virgin Money, creating the first true national competitor to the status quo in UK banking with a clear ambition to provide customers with the best service in the UK.

“Bringing the two banks together creates the UK’s sixth largest bank combining strong product, service and technology capabilities alongside an iconic brand with well-known consumer champion credentials.

“We are focused on delivering an excellent customer experience as we bring the two businesses together. This will be achieved through a clear, low-complexity, phased integration and re-branding plan over the next three years.”