The Cheshire to merge with Nationwide

We have announced our plans to merge with the Nationwide Building Society. The proposed merger will create stability and certainty for Cheshire's members in challenging economic conditions.

The combined society will retain the name Nationwide and will be owned and run for the benefit of members, underpinned by a strong commitment to mutuality. At a time when size and strength are valuable assets, The Cheshire will become a part of the UK's leading building society. Nationwide is also planning to merge with The Derbyshire Building Society.

The Cheshire will continue to operate under the Cheshire name as a separate trading brand of Nationwide. The branch network of both societies will remain, although Cheshire's customers will not be able to access their accounts from Nationwide branches, call centres and internet site, and vice versa.

There will be no member vote and the transaction will not involve any payout to the Cheshire membership. The transaction is subject to confirmation by the Financial Services Authority and approved by the Office of Fair Trading.

In order to ensure the merger is completed as quickly as possible it will be facilitated under sections 42B(3)(b) of the Building Societies Act in relation to The Cheshire and 94(5)(b) in relation to Nationwide. As a result the merger will proceed on the basis of Board resolutions of The Cheshire and Nationwide Boards, rather than a member vote. The Societies' Boards believe it is in the interests of their members that the merger completes as quickly as possible to avoid a period of prolonged uncertainty.

All eligible Cheshire members will receive a 'Merger Notification Statement' outlining details of the merger.

It is the Board's view that this proposed merger is in the best interests of our members at a time when unprecendented market conditions and a weakening economy have created much uncertainty. The Board believes that the mutual sector adds competition and strength to UK financial services and that this proposed merger will ensure that the sector loses none of its appeal.

More information about the proposed merger can be found in the Questions and Answers.