Nationwide announces mergers
8:09am Monday 8th September 2008
Mortgage lender Nationwide announced mergers with smaller mutuals the Derbyshire and Cheshire building societies.
Both groups had asked the Nationwide to consider deals following the identification of financial issues.
The Cheshire has assets of £4.9 billion, 45 branches and more than 440,000 members, while the Derbyshire has assets of £7.1 billion, 50 branches and 485,000 members.
Nationwide intends to retain the brands and branch networks and said it will not be making any special payment to members of the two societies.
Both groups expect to report losses for the first half of 2008.
Derbyshire's £17 million deficit reflects its exposure to sub-prime and commercial loans, while the Cheshire fell into the red by £10.5 million because of a one-off write-down on a single commercial loan.
Nationwide chief executive Graham Beale said: "The Derbyshire and The Cheshire have independently concluded that a merger with Nationwide is in the best interests of their savers and borrowers given the financial issues faced by both societies."
He said the core parts of the societies were in good shape and that it was in a "unique position", given its size, to offer support.
The deals create an organisation with almost 15 million members, around 1,000 retail outlets, £191 billion of assets and £122 billion of retail deposits.
Features
Half a million cash boost for Brentwood sports facilities
TWO sports facilities in Brentwood are to get a huge cash boost as part of Essex County Council’s commitment to the 2012 Olympics.
Hutton make best-ever progress in county cup
Essex Womens County Cup: Hutton Ladies 3 C&K Basildon 2
From Ramsay Street to the West End
LIFE really does begin at 40, according to Aussie all-rounder Jason Donovan, who is coming to Essex later this month.
Traveller: I fear for my unborn triplets if I'm evicted
A TRAVELLER who is expecting triplets says she fears for her unborn children if she is forced out of her home.
Remus Horse Sanctuary receives dog-friendly award
A HORSE sanctuary has won a Kennel Club award after coming up with ways to beat the credit crunch and broaden its support by offering specialist services catering for man’s best friend.
Eco-car market boosted by Govenerment cash
The eco-motoring revolution is gathering pace. Now Prime Minister Gordon Brown has given the official seal of approval for electric vehicles by endorsing a £100 million, five- year package to boost the market, more and more emissions-free motors will be silently gliding by on busy streets.
The Nationwide has announced mergers with two rivals
