Mortgage News
N&P members agree to Yorkshire merger
Norwich and Peterborough (N&P) building society’s members have voted in favour of the merger between N&P and larger rival Yorkshire.
Of those who voted, 89.61% of eligible savers and 87.22% of eligible borrowers, voted in favour of the resolutions to merge with Yorkshire building society.
Just over 10% of savers and 12% of borrowers voted against the deal.
The results were announced at N&P’s AGM on 22 August 2011. Independent Scrutineers are now required to re-check the precise voting figures.
N&P had been circled by rivals seeking a takeover for some months before it was forced to make a £57m allowance in March for compensation for all 3,100 customers it mis-sold Keydata products, which sent the building society’s balance book tumbling into the red.
Gordon Horsfield, chairman of N&P, said: “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.
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“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.”
The merger remains subject to confirmation by the FSA, expected to complete on 1st November 2011.