Yorkshire Building Society in talks with N&P

| March 20, 2011 | 0 Comments

It has been revealed that Yorkshire Building Society is in talks with smaller rival Norwich and Peterborough (N&P) which could lead to an acquisition.

The announcement comes after much consolidation in Britain’s mutual sector, as a result of funding pressures.

Late last year, Coventry Building Society and Stroud & Swindon merged, creating a business with approximately 1.5 million customers and assets of more than £20 billion.

Furthermore, a year ago, it was revealed that Skipton Building Society was merging with loss-making rival Chesham.

Yorkshire has already merged with Chelsea Building Society, while Scotland’s Dunfermline Building Society was hastily taken over by Nationwide two years ago.

Cheshire and Derbyshire building societies have been swallowed up by the Nationwide, while in June 2009, West Bromwich Building Society agreed a deal that saw the 160-year-old institution saved from collapse.

Meanwhile, Bradford-based Yorkshire is the second biggest society in the UK with around 2.6 million members.

N&P is Britain’s tenth largest society and recently said it had received merger interest, as well as the possibility for the injection of fresh capital.

However, last autumn, it was hit with claims of mis-selling of investments between 2006 and 2009, relating to its Keydata products.

At the time, it was said compensation could run into tens of millions of pounds and threaten the mutual’s future.

Meanwhile, in a statement this weekend, the Yorkshire said: “It would consider mergers with smaller societies if these can be completed on a basis that would be in the long term interests of its current and future members.”

In related news, Iain Cornish, long-standing chief executive of Yorkshire, will step down this year.

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