The proposed merger would create an enlarged society with more than three million members and 224 branches. If agreed adn subject to regulatory approval, the deal is expected to complete on 1 November.
The N&P board “strongly recommends” the merger, saying it is in the best interest of members and offers financial strength and security.
As part of the takeover agreement, Yorkshire will retain the N&P brand, keep all N&P branches open for at least two years, and look to restore its mortgage lending.
N&P stressed that a vote against the merger would result in “further significant cost cutting”, involving branch closures and the withdrawal of certain products and services in order to be able to reinvest in the business.
Gordon Horsfield (pictured), chairman of N&P, said: “In the absence of a merger, further significant cost cutting would be required to generate profitability to re-invest in the business. Some products and services would have to be discontinued and more branches would have to be closed.
“The board believes that an enlarged society will offer our members enhanced security by combining the Yorkshire’s financial strength as the UK’s second largest building society, with N&P’s regional strength in the East of England.”
Of those who vote, at least 75% of shareholding members and a majority of borrowing members must vote in favour of the merger in order for it to go ahead.
Members have until 17 August 2011 to return their vote.
