FSA confirms merger of Nationwide and Portman

The Financial Services Authority (FSA) has today given its confirmation that the merger between Nationwide and Portman building societies can proceed. The merger will become effective from 28 August 2007 and the enlarged society will be known as Nationwide Building Society.

The enlarged society will continue to be a mutual building society, owned by and run for the benefit of its members, offering attractively priced products and services. The society will have assets in excess of £160 billion and around 13 million members. It will be the second largest retail mortgage lender and the second largest retail savings provider in the UK.

Members of the Portman voted overwhelmingly in favour of the merger in April. All eligible Portman members will receive a bonus, which will be paid within 28 days of the effective date of the merger.

Around one million qualifying shareholding members will receive a pre-tax bonus of 5.75%, subject to a minimum of £200 and a maximum of £1,000. Around 120,000 qualifying borrowing members will receive a pre-tax bonus of £200.

Graham Beale, Nationwide's chief executive, said: "This is great news for members of both Nationwide and Portman. The enlarged society, with its strong commitment to mutuality, will be in an even stronger position to deliver real long-term good value to its members through better product pricing and excellent service. As the UK's largest mutual we will continue to provide a compelling alternative to the big retail banks."