"The joint venture will offer customers across the enlarged CYBG group, beyond Virgin Money’s existing customer base "
Virgin Money and Aberdeen Standard Investments have agreed a joint investments and pensions venture which will see ASI acquire 50% of Virgin Money Unit Trust Managers for £40m.
As a result of CYBG’s acquisition of Virgin Money in October 2018, the joint venture will also offer investment solutions to CYBG’s combined customer base of six million customers, expanding beyond Vigin Money’s existing three million customer base.
Virgin says the deal will "transform" its retail investment proposition, enabling it to provide customers with access to a broader range of funds and solutions
The transaction is expected to complete in Q2 2019, subject to regulatory approval.
David Duffy, Chief Exective of CYBG, said: “We are delighted to take the next step forward in our partnership between Virgin Money and Aberdeen Standard Investments, enabling us to provide innovative and attractive investment solutions across the Group’s six million customer base, through our national distribution.
"Using our brand and customer reach, combined with ASI’s clear asset management strengths we will be able to provide a truly compelling investment and pensions proposition to our retail customers.”
Martin Gilbert, co-chief executive at Aberdeen Standard Investments, commented: “The signing of the SPA that encompasses Virgin Money, Clydesdale Bank and Yorkshire Bank customers is an important milestone in progressing our joint venture with Virgin Money. The partnership offers a fantastic opportunity to develop a business that combines the best talents of Virgin Money and ASI.
"Most importantly, the joint venture will offer customers across the enlarged CYBG group, beyond Virgin Money’s existing customer base with investment solutions to help them achieve their long-term financial goals.”