Merger proposed between Yorkshire and Chelsea Building Societies
The Boards of Chelsea Building Society and Yorkshire Building Society have announced that they have agreed to merge, creating a second major force in the building society sector.
The enlarged Society will have assets of £35bn, providing a competitive and secure alternative to the retail banks. With 2.7m members and a national network of 178 branches, the merged Society will focus on the traditional building society business of residential mortgages and savings and will be principally retail funded. The enlarged Society will be known as Yorkshire Building Society with the Chelsea Building Society name retained and operated as a separate and distinct brand within the Yorkshire. The merger is subject to the approval of eligible members from both societies and confirmation by the FSA; it is expected to complete on 1 April 2010.
Members of both societies will continue to benefit from being part of an independent mutual, with savers and borrowers having the security and stability provided by the Yorkshire, the UK’s 2nd largest building society
The merger creates a strong mutual of greater scale, improved efficiency and better market positioning that will be well placed to deliver greater value to its members
The enlarged Society will continue to be owned and run for the benefit of its members, offering good value products and excellent customer service
Branches will remain in all communities where either Chelsea or the Yorkshire currently have a presence
There will be a commitment to continue community activities throughout the UK
Dual Financial Services Compensation Scheme protection (up to £50,000 per individual) will be retained for eligible savers who have accounts with both Chelsea and the Yorkshire immediately before completion of the merger (until 30 December 2010)
There will be a commitment to maintain a high level of member engagement in the operation of the enlarged Society.
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