Mid-sized bank CYBG said yesterday it had clinched a deal to take over rival Virgin Money after over a month of talks, in a deal valuing the lender at around £1.7 billion.

The deal will create Britain’s sixth biggest bank by assets. It is on the same terms as an increased bid CYBG put forward earlier in June will see Virgin Money shareholders receive 1.2125 CYBG shares per Virgin Money share and own approximately 38 per cent of the combined group.

CYBG’s chairman Jim Pettigrew, its CEO David Duffy and its finance director Ian Smith will all retain their roles in the combined group, with Virgin Money CEO Jayne-Anne Ghadia to act as a senior advisor to Duffy for an unspecified period of time beyond the completion of the offer.

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