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N&P/Yorkshire merger gets green light

N&P/Yorkshire merger gets green light

Category: Banking

Updated: 14/12/2012
First Published: 23/08/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Members of Norwich and Peterborough Building Society (N&P) have given the green light to a proposed merger with Yorkshire Building Society.

Of the N&P saving and borrowing members who voted, 89.61% of eligible savers and 87.22% of eligible borrowers, voted in favour of the resolutions to merge with the Yorkshire.

In order for the deal to go ahead, the savers' resolution required at least a 75% majority and the borrowers' resolution required a simple majority in favour.

Although the merger remains subject to confirmation by the Financial Services Authority (FSA), it is expected to be completed by November this year.

The coming together of Yorkshire, the UK 's second largest building society, and N&P, the ninth largest, will create an enlarged society with three million members and 224 branches.

N&P members had been urged to vote in favour of the deal after the society agreed to set £51 million aside to reimburse its customers affected by the Keydata scandal.

The society was also fined £1.5 million by the FSA for failing to give suitable advice to the 3,300 customers who invested in the products of the now defunct investment firm.

Although the new society will be called Yorkshire Building Society, the N&P brand will be retained as a separate brand.

Gordon Horsfield, chairman of N&P, said the members who supported the merger had recognised the short and long term benefits of the deal.

"The financial services market has changed fundamentally since the credit crunch began," Mr Horsfield added.

"If the needs of customers for a broad range of financial services are to be met, so as to provide a real mutual alternative to the banks, scale is more important to secure cost efficient operation and access to funding markets.

"The challenge is to be able to deliver the benefits of scale whilst retaining the personal touch.

"In selecting the Yorkshire as a merger partner the Board is confident that both societies share the same values.

"Furthermore, the enlarged Society will have capital ratios which are amongst the strongest of any UK lender, bank or building society and thus a secure basis upon which to go forward."

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