Skipton and Scarborough building societies announce merger

| November 3, 2008 | 0 Comments

As a result of challenging trading conditions, North Yorkshire-based building societies, Skipton and Scarborough have agreed to merge.

The deal, which is expected to be completed early next year, will see Scarborough Building Society become part of Skipton Building Society and will be known as the latter.

The two building societies said the merger will create a stronger society which will be well-situated to weather any future problems in the financial marketplace.

Furthermore, both societies share similar business models so the transaction should be straightforward.

The newly-created group will form one of the top five building societies with 860,000 members and £16 billion of assets.

Commenting on the proposed merger, John Goodfellow, chief executive of Skipton, said members will benefit and the merger will create a significant force in the building society sector.

John Carrier, chief executive of Scarborough, added that the merger will serve to enhance the building society sector.

The news comes just two weeks after Barnsley Building Society was forced to merge with the Yorkshire Building Society after it revealed its high exposure to collapsed Iceland banks.

In addition, the UK’s largest building society, the Nationwide, rescued two small societies, the Cheshire and the Derbyshire, two months ago.

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