Yorkshire confirms Chelsea merger

2 December 2009 9:24 am | By Lee Jones

The move is expected to be completed by April 2010 and will create an enlarged Society with assets of £35bn. Yorkshire admits the move will lead to “a number” of job losses.

The new entity will have 2.7 million members and a national network of 178 branches, the merged society says it will focus on the traditional building society business of residential mortgages and savings and will be principally retail funded.

The enlarged society will be known as Yorkshire Building Society with the Chelsea Building Society name retained and operated as a separate and distinct brand within the Yorkshire. The merger is subject to the approval of eligible members from both societies and confirmation by the FSA.

The chief executive of the enlarged society will be Iain Cornish, currently chief executive of Yorkshire and Yorkshire chairman Ed Anderson will remain as chairman. Chelsea executive chairman Stuart Bernau will step down from his position immediately prior to the merger becoming effective.

Cornish says: “As far as Yorkshire is concerned, we are seeing more positive signs and this merger will ensure that we are extremely well placed to prosper as markets recover. I firmly believe that a merger with Chelsea on these terms is in our members’ interests and urge them to vote in favour of it”.

Bernau says: “As part of the Yorkshire, the Chelsea name that our members know and love will live on, and they will continue to be able to receive the same style of friendly and personal service that is the pride of our Society. We urge our members to vote in favour of the merger”.

Dual Financial Services Compensation Scheme protection, up to £50,000 per individual, will be retained for eligible savers who have accounts with both the Yorkshire and Chelsea immediately before completion of the merger until the end of next year.

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