Nationwide swoops on battered rivals

KTF

Just added to the Media Centre this morning.

MERGERS OF NATIONWIDE WITH THE DERBYSHIRE AND THE CHESHIRE BUILDING SOCIETIES
Nationwide Building Society today announces that it will merge with The Derbyshire Building Society and The Cheshire Building Society, who will transfer into the Nationwide Group by way of two separate transactions. These are prudent and pre-emptive actions taken independently by the Boards of The Derbyshire and The Cheshire following the identification of financial issues faced by both Societies. The transactions represent an important step in maintaining a strong mutual sector in the UK, with Nationwide's pre-eminent position and financial strength providing a solid foundation for the future.
These transactions bring The Derbyshire and The Cheshire's combined circa 925,000 members the benefits and security of membership of Nationwide, the UK's largest building society, and create a society with assets totalling more than £191 billion and £122 billion of retail deposits.

There are other facts and figures on the page here: http://www.nationwide.co.uk/mediacentre/PressRelease_this.asp?ID=1261

ashm1

http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSWLA915620080908

LONDON, Sept 8 (Reuters) - Nationwide, the UK's biggest customer-owned lender, said on Monday it was to merge with smaller rivals the Derbyshire and Cheshire Building Societies.
Nationwide, the country's second-biggest provider of mortgages, said the tie-ups would create a mutually owned group with assets of 191 billion pounds ($335.9 billion) and 122 billion in retail deposits.
The mergers will be completed without a vote by the three societies' members, and Derbyshire and Cheshire customers will not receive a payout, Nationwide said. (Reporting by Myles Neligan, editing by Will Waterman)

Not a normal 'merger'

Carpet bagging is dead!

Milarky

Members of each society, and other interested parties will have the right to make representations to the FSA with respect to the proposed merger. Details of how to make representations, together with the timetable, will be set out in the Merger Notification Statements that will be issued to all eligible members of The Derbyshire and The Cheshire.

(also taken from above)
http://www.nationwide.co.uk/mediacentre/PressRelease_this.asp?ID=1261

backfoot

Given that it takes over four months for Nationwide to process an ISA Transfer Form, City Experts have predicted that the proposed merger with Derbyshire and Cheshire B.S.'s should be completed by August 2042.
Watchdogs have said they are happy provided interest is backdated.

I,_Brian

mikbruin wrote: »

Well it is looking as if this is a rescue, and the word "merger" is rubbish.

Absolutely right - Nationwide will be operating them, rather than merging these businesses with their own.

donnykebab

maintaining a strong mutual sector in the UK

mutuality it's a bit of a sham then in reality.

Lets hope the crack ISA team are on this one - so fingers crossed the transfer forms don't go missing

bristolleedsfan

Guess that their is no point keeping Derbyshire and Cheshire accounts open. :think:

Cheshire BS Customer Service has been woeful for a long time so it could be said that this is a match made in heaven. :rolleyes2

arsenalboy

:mad: :mad:
Aaaghh.

I have always made sure that I have kept beneath the 35k but this merger will tip me over.
I have ISA's with Nationwide (only waited 3 months:p ) and a fixed rate bond with Derbyshire.
Obviuosly not expecting problems with Nationwide but do you think in a situation like this you can get the money out of the fixed rate bond without the interest penalty? The goalposts are being moved?

MarkyMarkD

Given that you can move the ISAs without penalty - I presume - I'm not sure why you'd want to get rid of the fixed rate bond.

The £35k limit worry is paranoia. Nobody's going to lose money investing in a UK building society.

arsenalboy

yes I agree it probably is paranoia, but all the advice is not to keep 35k with one provider and then, through no fault of your own, you are put in that situation.
Or are you saying that although banks can fail it can't happen to building societies?