The boards of Newcastle Building Society and Manchester Building Society said they have now entered into a legally binding agreement to merge “by way of an Instrument of Transfer of Manchester’s engagements to Newcastle.”
Newcastle Building Society has about 345,000 members and 31 branches. It employs 1,400 people and its total assets were £5.3 billion at December 31, making it the 8th largest building society in the UK.
Manchester Building Society has 11,000 members and no branches. It employs 44 people and its total assets were £200 million at December 31, making it the 41st largest Building Society in the UK.
“The merger, which remains subject to confirmation by the Prudential Regulation Authority (PRA), will be conducted in accordance with the process set out in the Building Societies Act 1986,” said the societies.
“If the PRA confirms the merger, it is expected to become effective on 1st July 2023.
“A Merger Notification Statement with further details of the merger will be sent to all eligible members of Manchester by the second week of April 2023.
“Interested parties (which includes the members of both Manchester and Newcastle) will have the opportunity to make representations before the PRA decides whether or not to confirm the merger.
“Details of the process for this will be set out on the websites of both Newcastle and Manchester and will be advertised in various newspapers (national and local) in mid-April in accordance with the requirements of the Act.
“The Newcastle board looks forward to welcoming the members of Manchester as full members of Newcastle subject to the PRA confirming the merger.”