Norwich & Peterborough Building Society says it could close some of its branches and withdraw certain products and services if members vote against the proposed merger with Yorkshire Building Society.
Merger talks between the two parties began in March. The combined society would have more than three million members and 224 branches. Members have until August 17 to return their voting forms.
The N&P board “strongly recommends” the proposed merger, which it believes will safeguard the future of the society.
N&P chairman Gordon Horsfield says: “The board has undertaken a detailed strategic review of the options for the future of N&P and concluded unanimously that a merger with the Yorkshire is firmly in the best interests of N&P’s members.
“In the absence of a merger, further significant cost cutting would be required to generate profitability to reinvest in the business. Some products and services would have to be discontinued and more branches would have to be closed.”