Aberdeen Standard Investments has signed a purchase agreement with Virgin Money as part of the firms’ joint venture to build a new investment proposition.
CYBG, which completed the takeover of rival Virgin Money last October, said the joint venture with Aberdeen Standard will “build on” Virgin Money’s £3.7bn funds under management as customers will also get access to Aberdeen Standard’s products.
The tie up sees Aberdeen Standard acquiring a 50 per cent stake in Virgin Money’s investment arm for £40m.
The deal for a stake in Virgin Money Unit Trust Managers will see Aberdeen Standard services being offered to all CYBG customers, not just Virgin Money account holders.
Aberdeen Standard Investments co-chief executive Martin Gilbert says: “The signing of the sale and purchase agreement 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 Aberdeen Standard.
“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.”
The deal is subject to regulatory approval and is expected to be completed in the second quarter.