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Chelsea and Yorkshire Building Society merger moves a step closer

25 January 2010 / by Andy Davies

Chelsea Building Society's (BS) merger with Yorkshire BS has moved a step closer following Chelsea's members voting in favour of the move.

The merger – which will create the UK's second largest building society behind Nationwide, with assets of over £35billion, was backed by nearly 92 per cent of savers and 90 per cent of borrowers.

In addition, the merger will also mean Chelsea and Yorkshire have a combined membership of 2.7 million and a network of 178 branches nationwide.

Commenting, Stuart Bernau, chairman and interim chief executive at Chelsea said: "I am delighted that Chelsea's saving and borrowing members have voted in favour of the merger with the Yorkshire Building Society.

"Bringing the two organisations together will create a second major force in the building society sector and a competitive and secure alternative to the banks."

It is hoped the merger will be completed on 1 April 2010, subject to approval first by Yorkshire members tomorrow and subsequent confirmation by the FSA.

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