The UK’s Prudential Regulation Authority (PRA) has announced its confirmation of the merger of Newcastle Building Society with Manchester Building Society.

“The confirmation follows announcement by the boards of both societies in March 2023 that they had entered into a legally-binding agreement to merge by way of a transfer of Manchester’s engagements to Newcastle,” said Newcastle Building Society in a stock exchange statement.

Manchester’s CEO Paul Lynch said: “Following rigorous due diligence, a formal process, and the confirmation of the merger from the PRA, we are delighted that Manchester Building Society members and our Manchester colleagues can look forward with certainty and optimism to the opportunities presented as part of a larger, financially robust Society.”

Newcastle CEO Andrew Haigh said: “This merger is important in maintaining a strong building society sector in the UK and provides clear benefits to both societies.

“Newcastle Building Society is a purpose-powered, growing organisation with an ambitious strategy for the future.

“The Newcastle Board, executive team and colleagues across the business look forward to welcoming the members of Manchester as full members of Newcastle.

“We also look forward to welcoming our new Manchester colleagues as we work together towards our continued growth and success, listening to our members, and driving the value that our members want to see.”

Newcastle Building Society has 345,000 members and 31 branches. It employs 1,400 people and at December 31, 2022, its total assets were £5.3 billion, making it the eighth largest building society in the UK.

Manchester Building Society has 11,000 members and no branches. It employs 44 people and at December 31 its total assets were £200 million, making it the 41st largest building society in the UK

Addleshaw Goddard LLP has acted as legal adviser to Manchester and TLT LLP has acted as legal adviser to Newcastle.