Yorkshire Bank will fade from the High Street after 159 years if merger with Virgin Money goes ahead

The  159-year-old Yorkshire Bank name will fade from the High Street if a merger with Virgin Money goes ahead.

Clydesdale & Yorkshire Banking Group has made a £1.6billion bid for Virgin Money and is in talks with bosses.

The Virgin brand made famous by Sir Richard Branson is key to the deal – with Yorkshire Bank eventually phased out along with 18-year-old Clydesdale in Scotland.

Clydesdale & Yorkshire Banking Group has made a £1.6bn bid for Virgin Money as it plans to phase out its name and that of Clydesdale in Scotland

CYBG is offering Virgin Money shareholders a 38 per cent stake in the combined business worth £1.6billion, which it upped from 36 per cent late on Sunday night.

It would mean Branson, who owns more than a third of Virgin Money stock, would have around 13 per cent of the new bank after the takeover.

He would be in line for millions of pounds of dividends a year.

The lender will also have to pay Branson for using the Virgin name.