Societies in merger talks

Yorkshire Building Society and Chelsea Building Society have announced they are in advanced talks regarding the possibility of a merger. The coming together of the UK's second and fifth largest societies respectively has the potential to create a second major force in the building society sector, alongside Nationwide, with assets in excess of £35 billion. Chelsea has claimed to be well funded with strong liquidity but the talks come after it last year reported a record loss for a building society. A capital exchange of Chelsea's subordinated debt into a new subordinated debt instrument is being contemplated as part of the deal. "While it would be sad to lose another building society, the mutual sector is likely to be stronger for it in the long term," said Lee Tillcock, editor of Moneyfacts.
 
 
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