Merger Proposal
On 8 September 2008 it was announced that the Derbyshire, along with the Cheshire Building Society, had agreed to a merger with the Nationwide Building Society, the largest such institution.
The merger was borne out of increasing fears about the financial security of both the Derbyshire and the Cheshire societies with the former expected to post half-yearly losses of £17 million and the latter posting losses of £10.5 million. As a result of these projected losses no windfall payments were made to the savers of the smaller societies Unusually there was no vote amongst members as to this proposition, after a special resolution under the Building Societies Act enabling a faster merger.
The deal was concluded on 1 December 2008 following agreement by the Financial Services Authority and the Office of Fair Trading. The Nationwide will initially keep the separate identities of the two societies.
Read more about this topic: Derbyshire Building Society