Bristol & West branch network acquired at £150m by Britannia Building Society |
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Published
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Wed, 25 May 2005 14:55
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The Bank of Ireland has entered into an agreement with the UK's second largest building society, Britannia Building Society for the sale of its Bristol and West branch network along with the associated base for about £150m (€218m).
The sale, which will take place through a business transfer scheme based on the Financial Services and Markets Act 2000, will require approvals from the UK courts and the Financial Services Authority.
Customer base of 850,000 members will become an integral part of the Britannia Building Society and branches will also be rebranded. This venture will augment branches of Britannia to 250 and the society will have immense presence across 65 towns and neighborhoods across the Southwestern region.
The acquisition results in a win-win situation for both the bank of Ireland and the Society. With this development, Britannia Building Society will enjoy nationwide presence for the first time. The bank strategically intents to cut costs and concentrate on core profitable areas, primarily the mortgage business services.
| With about 31 locations that call for a merger, since the Bristol and West site is located within a mile of the Britannia branch, the rest, which is over a mile, will not be closed, but will become Britannia outlet.
A building society until 1997, Bristol and West was subsequently taken over by Bank of Ireland. It closed 33 Bristol & West branches by November 2004 with 97 remaining.
The employee base of Bristol and West network consists of about 850 people with 700 on the high streets and 150 at the bank’s headquarters. Besides, another team of 1000 members at Temple Quay in Bristol will not be affected and will remain part of the bank.
Though the Society confirms, "Every Bristol & West employee will be offered a new role," regional Secretary of Amicus, Arthur Taylor said that “"I think there is going to be job (losses) downstream in some places because there is going to be rationalization."
Chief Executive of Bank of Ireland's UK financial services, Roy Keenan said that "(The) sale will probably complete in the autumn, probably around October, at that stage as well as all customers transferring to Britannia, all staff will transfer and there will be no compulsory redundancies."
The anticipated profits of the branch network being estimated at £90m (after tax) will be showcased with the outset of next financial results.
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