Chelsea members say yes to merger with the Yorkshire

Chelsea members today voted in favour of a merger with the Yorkshire Building Society at a Special General Meeting in Birmingham. A majority of 91.70% of savers and 90.07% of borrowers passed each of the resolutions to merge with the Yorkshire.

The move is the first step towards creating a second major force in the building society sector, with assets of over £35bn, 2.7m members and a national network of 178 branches.

Stuart Bernau Chelsea's chairman and interim chief executive 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."

The merger is now subject to approval first by Yorkshire members at a Special General Meeting in Bradford on Tuesday, 26 January and subsequently confirmation by the FSA. If confirmed, the merger is expected to complete on 1 April 2010.