Magazine article Marketing

Marketing Moment: Virgin Money Acquires Northern Rock Plc

Magazine article Marketing

Marketing Moment: Virgin Money Acquires Northern Rock Plc

Article excerpt

- What has happened?

After years of promising to enter high-street banking, Sir Richard Branson was finally granted his wish last week with the purchase of nationalised bank Northern Rock plc.

Chancellor George Osborne announced that Virgin Money was the winning bidder for Northern Rock's 75 branches and 2100 staff, paying pounds 747m in cash. The deal is due to be completed by 1 January 2012. The government said it is not currently considering the sale of Northern Rock (Asset Management), which houses the 'bad debt' remnants of the old business.

- What does that mean for customers?

In general terms, their accounts will simply be moved over to the Virgin Money brand. Branches will be rebranded in the New Year, when Virgin can be expected to launch an ad campaign setting out its credentials.

Branson has long argued that the UK banking sector lacks 'fresh ideas' and needed an 'injection of new competition'. …

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