Jobs to go as building societies agree merger

Thursday 3rd December 2009

Yorkshire and Chelsea, two of Britain's biggest building societies, are planning to merge, it has been confirmed.

The move will create a company with over 2.7 million customers but may cause job losses.

The announcement that talks between the two are ongoing was made earlier this week and the merger is expected to be announced on the April 1st 2010.

Yorkshire and Chelsea are Britain's second and fifth largest building societies respectively. They say a merger between them would create a company with over 2.7 million customers and over £35bn in assets.

The new organisation would be known as Yorkshire Building Society with Chelsea Building Society being retained as a separate brand with its own branches and products.

A joint statement was issued by the societies in which they stated that the merger would only go ahead if both boards were satisfied that it was in the interests of both societies.

It said: "Any merger would require the formal approval of both the Yorkshire and Chelsea savings and borrowing members. The merger would also be subject to confirmation by the Financial Services Authority. No action is required by members at this stage."

The move is likely to lead to branch closures in some area and job losses for backroom staff.

Both societies have said that branches would remain in areas where either of them has a presence, but no guarantees have been made for those areas where both currently operate.

Last year Chelsea revealed it had £55 million in Icelandic banks when the system collapsed.

Iain Cornish, chief executive of Yorkshire Building Society, said: "Chelsea has an excellent reputation, particularly in the savings market, and a strong network of branches in the south.

"Together, our combined expertise will deliver a competitive, member-owned organisation, which will provide real choice to consumers across the UK."

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