Coventry and Stroud confirm merger deal

Earlier this month, it was reported that Coventry Building Society was in merger talks with its smaller rival, the Stroud & Swindon.

Today, however, the talks have been confirmed and the merger will bring together the countrya��s third and eleventh largest building societies.

The merger, which is subject to approval by the members of Stroud & Swindon and confirmation by the Financial Services Authority, will create a business with approximately 1.5 million customers and assets of more than A?20 billion.

Commenting on the deal, David Stewart, chief executive of Coventry Building Society, said: “Coventry’s performance over the last three years has demonstrated the strength of our traditional building society model.

“I believe that the merger with Stroud & Swindon building society will help us build on recent successes and bring the benefits of our prudent and member-focused approach to a wider membership,” added Mr Stewart.

The news comes as Coventry announced last month that its profits doubled to A?56.2 million in 2009. As a result of its strong capital position, it has maintained its A credit rating.

Meanwhile, John Sutherland, chief executive of Stroud & Swindon Building Society, said: “Today’s announcement is excellent news for Stroud & Swindon members who have the opportunity to join one of the UK’s strongest and most profitable building societies.a�?

The deal follows a series of recent mergers between Britaina��s building societies and brings further consolidation to the mutual sector.

In February, it was revealed that Skipton Building Society was merging with loss-making rival Chesham.

Meanwhile, earlier this year, Yorkshire Building Society members voted in favour of a merger with Chelsea Building Society.

Scotlanda��s Dunfermline Building Society was hastily taken over by Nationwide a year ago, while Cheshire and Derbyshire building societies have been swallowed up by the Nationwide.

Last year, Britannia Building Society merged with Co-operative Financial Services and in June 2009, West Bromwich Building Society agreed a deal that saw the 160-year-old institution saved from collapse.

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