Buy to Let
Nationwide to merge with The Derbyshire and The Cheshire
Nationwide Building Society is to merge with The Derbyshire Building Society and The Cheshire Building Society, who will transfer into the Nationwide Group by way of two separate transactions.
These are prudent and pre-emptive actions taken independently by the boards of The Derbyshire and The Cheshire following the identification of financial issues faced by both societies.
The transactions represent an important step in maintaining a strong mutual sector in the UK, with Nationwide’s position and financial strength providing a solid foundation for the future.
These transactions bring The Derbyshire and The Cheshire’s combined membership of around 925,000 the benefits and security of membership of Nationwide, the UK’s largest building society, and create a society with assets totalling more than £191bn and £122bn of retail deposits.
Graham Beale, Nationwide’s chief executive, said: “The Derbyshire and The Cheshire have independently concluded that a merger with Nationwide is in the best interests of their savers and borrowers given the financial issues faced by both societies.
“The core member businesses of both societies are in good shape and have a better future as part of a larger organisation. Nationwide is in a unique position because of its size and financial strength to provide support, and we regard it as both responsible and commercially beneficial to undertake these mergers.
“The mergers with The Derbyshire and The Cheshire provide an excellent opportunity for Nationwide to build on its strong position in the financial services sector by adding two attractive customer franchises creating an organisation with almost 15 million members, around 1,000 retail outlets, £191bn of assets and £122bn of retail deposits.”
Adrian Coles, director-general of the Building Societies Association (BSA), said: “The BSA welcomes the mergers of Nationwide Building Society with Derbyshire and Cheshire building societies. The mergers will serve to further enhance the strength and stability of the sector.
“There have always been mergers between building societies and it is no surprise to see mergers announced in the current difficult market conditions. This announcement represents a prudent reaction by two building societies to the particular positions in which they find themselves, and the continuation of a long tradition in which building societies solve any potential problems emerging within the sector. Overall, the building society sector is coping well with the current difficult conditions in the housing market.”