Yorkshire and Chelsea Building Societies merger talks

The Boards of Yorkshire Building Society and Chelsea Building Society have today announced that they are in advanced talks regarding the possibility of a merger.

For a merger to proceed, the Boards of both societies would need to be satisfied that it will be for the benefit of each Society's members.

The Yorkshire and Chelsea both share a commitment to mutuality and local communities and a merger has the potential to create a second major force in the building society sector with assets in excess of £35bn.

Any merger would require the formal approval of both the Yorkshire and Chelsea savings and borrowing members. The merger would also be subject to confirmation by the Financial Services Authority (FSA).

No action is required by members at this stage. Further updates will be given as appropriate.

About Yorkshire Building Society
The Yorkshire, which has its head office based in Bradford, is the UK's second largest society with 2 million members, 143 branches and assets of over £20bn*.  It has a traditional business model with excellent capital strength, high levels of liquidity and a solid retail funding base.

About Chelsea Building Society
Chelsea has its head office in Cheltenham and is the UK's fourth largest society with approximately 700,000 members, 35 branches and assets of £14bn*. It has a very strong retail funding position together with expertise in direct mortgage and savings markets.

*As at 30th June 2009