The mutual says it has been granted the “requisite consent” by the Financial Conduct Authority and the Bank of England’s Prudential Regulation Authority to allow the deal to go ahead.

The cash deal will be handled through a scheme of arrangement between Virgin Money and its shareholders, the society says in a stock market statement.

Nationwide adds that it expects the merger to be completed by the end of January.

The mutual’s chief finance officer Chris Rhodes has stood down from its board and “will spend the period until [the] completion [of the merger] preparing to become the chief executive officer of Virgin Money”.

Nationwide deputy chief finance officer Muir Mathieson has replaced Rhodes as chief finance officer.

In July, the Competition and Markets Authority cleared the merger between the two high street institutions.

The regulator said, “the merger does not give rise to a realistic prospect of a substantial lessening of competition” across residential and landlord mortgages, as well as their credit card businesses.

In May, Virgin Money shareholders voted by an 89% majority to accept the mutual’s takeover offer. Nationwide members do not have a vote on the deal.

The surprise deal, announced in March, sees Nationwide offer Virgin Money shareholders 218p in cash and a 2p dividend to be paid in this financial year, or, if earlier, shortly before the completion of the takeover.

The offer was a 38% premium to Virgin Money’s 159.1p closing price of pence on 6 March, the day before the deal was announced.

Nationwide plans to terminate the Virgin brand after four years and will rebrand the bank over the following two years.