Skipton and Holmesdale building societies have agreed a merger, subject to approval from Holmesdale’s members.
While the move is subject to confirmation by the Prudential Regulation Authority, the merger is expected to become effective on 1 October 2018.
Mike Kirsch, chief executive of Holmesdale Building Society, said: “We firmly believe that this proposed merger is in the best interests of our members.
“Without the merger we would not be able to continue to provide the same range of products or good value pricing to our members.
“We believe we can offer enhanced security by merging with a much stronger building society able to offer more choice and value to members in the long-term.
“A merger with Skipton will result in Holmesdale members having access to Skipton’s large national branch network, its online, post, telephone and financial advice offering, and to a broader range of attractive products and services – from the time when the merger becomes effective.”
Full details of the proposed merger and details as to how Holmesdale’s members can vote on it will be sent to Holmesdale’s members eligible to vote in June 2018.
Skipton has received consent from the PRA to approve the proposed merger by board resolution.
There will also be no compulsory redundancies among designated branch staff as a result of the merger. Holmesdale members will be able to transact in any branch of the enlarged Society from the merger date.
David Cutter, Skipton’s group chief executive, said: “We have always made it clear that we would consider further merger activity where it is in the best interests of our members.
“We look forward to welcoming Holmesdale members on board and sharing with them our full range of financial solutions to help them plan for their life ahead.”
Skipton is the UK’s fourth largest building society.
Peter Hill, chief executive of Leeds Building Society, played down the suggestion that we could see more consolidation from building societies this year.
He said: “I wouldn’t see this as being a start of a wave of mergers – I think it’s a bit of a one off.
“This is more to do with a very large building society helping to support a very small building society rather than being about consolidation to grow.”