Nationwide’s £2.9bn takeover of Virgin Money is under investigation by the Competition and Markets Authority (CMA).

The UK’s competition regulator confirmed that it will probe whether the intended merger, which could be the biggest UK bank takeover since the 2008 financial crisis, will lessen competition in the banking sector.

Having today launched the first phase of its merger inquiry, the CMA said it is now inviting comments on the deal from any “interested party”, with a deadline for this feedback set for 14 June.

Nationwide members were not asked to vote on the deal when it was announced, as the building society said it did not need a member vote for the deal. Virgin Money’s shareholders approved the deal earlier this month.

Both Nationwide and Virgin Money are yet to comment on the CMA investigation.

The CMA decision following the findings of the phase one inquiry is due to be announced on 26 July, the regulator has confirmed.

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