Nationwide and Portman announce merger |
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Tue, 12 Sep 2006 09:40
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LONDON - Nationwide building society and Portman building society are to merge creating the second biggest mortgage lender in the UK. The merged entity will take the name of Nationwide Building Society, although it was made clear that the deal was a merger rather than a takeover.
"This is great news for members of both societies. As a result of the merger, 13 million people will be members of a bigger and even better society, offering market leading products and pricing, underpinned by a strong commitment to mutuality," said Philip Williamson, Nationwide's chief executive. The deal is expected to finish in September 2007.
In a joint announcement to the Stock Exchange, the societies announced that Graham Beale, who is presently group finance director of Nationwide, will take over as chief executive of the merged entity from April 1, 2007. "We are really looking forward to welcoming customers and employees of Portman to the world’s number one building society, which will be the second largest mortgage lender in the UK and will reinforce Nationwide’s present position as the second largest provider of retail savings," Williamson said.
Reacting to the merger, Robert Sharpe, chief executive of Portman, said, "If building societies are to continue to compete successfully with the retail banks, they need to enjoy comparable economies of scale."
The merger is pending regulatory approval by the Financial Services Authority and the Office of Fair Trading. The merged group will have assets of £150 billion. Nationwide said the new company would continue to operate for the benefit of its members and would have 880 locations across the UK.
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