Written question asked by Lord Oakeshott of Seagrove Bay (Liberal Democrat), in the House of Lords. It was answered by Lord Sassoon (Conservative) on Monday, 5 December 2011.

Banking: Northern Rock

Question: To ask Her Majesty’s Government (1) whether the agreement for the sale of Northern Rock plc to Virgin Money contains any provision enabling the sale price to be varied or the buyer to withdraw, contingent on any decision by the Financial Services Authority (FSA) on the amount of regulatory capital necessary; and (2) whether there are any circumstances in which the buyer is entitled to recoup any element of its fees from the vendor or from Northern Rock plc, including if the FSA agree not to approve the transaction; and (3) whether there is a long-stop date before which (a) the buyer or (b) the vendor can withdraw from the sale.

Answer: The deal is expected to complete on 1 January 2012, pending European Commission (EC) merger clearance and Financial Services Authority (FSA) approval. The Government will consider what information regarding the Northern Rock sale process can be disclosed following the completion of the transaction.

Secondary information