The UK’s Competition and Markets Authority (CMA) said it has cleared the anticipated £2.9 billion cash acquisition of listed bank Virgin Money UK plc by mutually-owned Nationwide Building Society.

The CMA said the deal “does not give rise to a realistic prospect of a substantial lessening of competition.”

Nationwide CEO Debbie Crosbie said: “This is another important step on the path to completing the acquisition of Virgin Money, with all the benefits for members and customers that this will bring.

“We remain on course to receive all the necessary approvals to complete the deal in the final three months of this year.”

Glasgow and Newcastle-based Virgin Money has about 7,300 full time equivalent staff.

Crosbie is a former top executive at Clydesdale and Yorkshire Banks, now part of Virgin Money. She is also a former TSB Bank CEO.

A Virgin Money spokesman said: “We welcome the CMA’s decision to unconditionally clear the proposed acquisition by Nationwide following its Phase 1 investigation.

“The enlarged group will combine two complementary businesses that together can offer more great products and services to a larger customer base.

“We continue to expect that the transaction will complete in the fourth quarter of this year.”