Mutually-owned Nationwide Building Society said regulators the FCA and the PRA have given their consent for its £2.9 billion cash acquisition of listed bank Virgin Money UK plc.

Nationwide also announced that Muir Mathieson has been appointed as its chief financial officer.

Chris Rhodes is standing down from the Nationwide board with immediate effect and will spend the period until completion of the deal preparing to become the CEO of Virgin Money, the companies said.

In a joint stock exchange statement, the firms said: “The Acquisition will not require any immediate changes to the capital structure of the Virgin Money Group or the Combined Group as a whole.

“The PRA has confirmed that it intends to apply sub-consolidated prudential requirements to Virgin Money until 31 December 2028, which means that the outstanding externally held own funds issued by Virgin Money will, subject to applicable deductions, be eligible to meet the consolidated capital requirements applicable to the Combined Group.

“The Bank of England has also confirmed that it intends to exercise its discretion to treat the outstanding externally held eligible liabilities, additional tier 1 and tier 2 instruments issued by Virgin Money as eligible to meet the consolidated MREL requirements applicable to the Combined Group until 31 December 2028.

“Nationwide and Virgin Money intend to simplify and align their capital structures over time as part of broader integration planning.”