Both building societies approached Nationwide after identifying financial issues within their businesses, and the mergers are designed to shore up the financial strength of the mutual sector. 925,000 members of the Cheshire and the Derbyshire will now become members of the Nationwide.
"The mergers with The Derbyshire and The Cheshire provide an excellent opportunity for Nationwide to build on its strong position in the financial services sector by adding two attractive customer franchises creating an organisation with almost 15 million* members, around 1,000 retail outlets, £191 billion of assets and £122 billion of retail deposits.
"The mergers will further enhance Nationwide’s position as the leading UK building society. Nationwide remains committed to mutuality and recognises that these transactions play their part in maintaining a modern and healthy mutual sector in the UK. We look forward to welcoming The Derbyshire and The Cheshire members to Nationwide as part of the UK’s largest building society."
Karen McCormick, chief executive of The Cheshire, said: "We are pleased with the progress we have made at the The Cheshire in building a progressive modern mutual organisation for our members. The core member business is strong. However, whilst we have performed resiliently, the unprecedented market conditions and poor economic outlook have led the Board to consider its strategic options. I am confident that our members will benefit from the strength of the combined organisation. It is pleasing that The Cheshire brand and branch network, together with its presence in the North West, are being retained through a merger which we believe will be in the best interests of our members."
