The proposed merger between Nationwide and Cheshire building society has been confirmed by the Financial Services Authority.
The merger was announced earlier this year along with a proposed merger between Nationwide and Derbyshire building society which was confirmed late last month.
As the credit crisis worsened it became clear that a merger would be a "prudent measure to ensure the financial strength of each Society." Commenting on the merger, chief executive of The Cheshire, Karen McCormick said:
"I am confident that our members will benefit from the strength of the combined organisation."
Commenting on both the Derbyshire and Cheshire merger, Nationwide Building Society
's chief executive, Graham Beale said: "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 £122billion of retail deposits."
And, due to fears over the current financial turmoil hitting the UK, the FSA has changed its compensation scheme for merged building societies.
Instead of changing the limit to £50,000 per merged accounts, savers with savings accounts
in more than one of Nationwide, Derbyshire and Cheshire building society
will receive compensation up to £50,000 per account.
Commenting, Mr Beale said: "A number of customers of both the Cheshire and Derbyshire who have savings across the three societies raised concerns about the limits of the Financial Service Compensation Scheme.
"We have been working hard with the regulator to come up with a solution that works for members of merged societies and are delighted that we can now ease customer's concerns by announcing that existing customers in Nationwide and either or both – Cheshire and Derbyshire – will post merger, have separate cover for the maximum amounts invested in each of the three organisations."
The Nationwide Cheshire building society merger is due to take effect from December 15, whereas the Derbyshire Nationwide merger occurred earlier this week.
© Fair Investment