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N&P: Vote yes on Yorkshire BS merger

N&P: Vote yes on Yorkshire BS merger

Category: Banking

Updated: 14/12/2012
First Published: 11/07/2011

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Norwich & Peterborough Building Society (N&P) has strongly urged its members to votes 'yes' for its proposed merger with Yorkshire Building Society.

N&P said it has begun sending voting packs to its 260,000 eligible members, and has recommended approving a move that would create an enlarged society with more than three million members and 224 branches.

The building society needs a vote of 75% or more to confirm the move which would then need to be rubber stamped by the Financial Services Authority, and completed in November.

Members have until August 17 to return their voting forms, either online or by post, or they are able to vote in person at a special general meeting that will take place in Peterborough on August 22.

Members of N&P have been warned that a failed bid would harm its long term future, with branches shut and products being withdrawn.

"In the absence of a merger, further significant cost cutting would be required to generate profitability to reinvest in the business," confirmed Gordon Horsfield, chairman of N&P.

"Some products and services would have to be discontinued and more branches would have to be closed."

Under the terms of the takeover deal, all existing 46 N&P branches would be kept open for a minimum of two years, while the society's standard variable rate would from 5.35% to 4.99% - in line with Yorkshire BS.

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