U.K. challenger bank Virgin Money Holdings has agreed to a merger bid by rival CYBG PLC worth 1.7 billion pounds, the companies said Monday. The terms of an all-share offer by CYBG, the owner of Clydesdale Bank and Yorkshire Bank have been agreed, allowing the lenders to create “the U.K.’s first true national banking competitor to the status quo,” they said. CYBG’s chief executive, David Duffy, and finance chief, Ian Smith, will keep those roles in the merged bank, which will keep the Virgin Money brand. Virgin Money shareholders will receive 1.2125 new CYBG shares for each Virgin Money share, to own 38% of the new group. Based on CYBG’s closing price of 306 pence per share on Friday, each Virgin Money share is valued at 371 pence. That compares with 355 pence at the close Friday.