Yorkshire and Chelsea members vote in favour of merger

It emerged in December that Yorkshire Building Society and Chelsea Building Society were in advanced merger talks and the deal is moving a step closer after YBS members voted in favour of the merger.

Around 87% of savers and 85% of borrowers voted in favour of the merger, which members of the Chelsea have already approved.

The merger, which will create the UK’s second largest building society after the Nationwide will be finalised on 1 April 2010, subject to approval by the Financial Services Authority.

Commenting on the merger, Stuart Bernau, chairman and interim chief executive at Chelsea said: “I am delighted that Chelsea’s saving and borrowing members have voted in favour of the merger with the Yorkshire Building Society.

“Bringing the two organisations together will create a second major force in the building society sector and a competitive and secure alternative to the banks,” he added.

However, the two societies warned in December that the merger will lead to a number of job losses.

The deal, which will be the biggest in the building society sector since Nationwide took over Portman three years ago, will create an institution with 2.7 million customers and assets of around £35 billion.

Discuss this in the Finance Markets forums

Story link: Yorkshire and Chelsea members vote in favour of merger