Yorkshire Building Society to acquire Egg's mortgage business
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Yorkshire Building Society has entered into an agreement with Egg Banking plc, a subsidiary of Citigroup Inc, to acquire its mortgage and savings business, comprising a £2.5bn savings book and a £430m mortgage book.
As part of the transaction the Yorkshire will also acquire the Egg brand.
The acquisition is to be implemented by a banking business transfer under Part VII of the Financial Services and Markets Act 2000.
This process is subject to approval by the High Court, which amongst other considerations will take into account the opinion of the Financial Services Authority.
The acquisition is expected to complete in the fourth quarter of 2011.
Yorkshire says Egg’s mortgage book comprises high quality, low loan-to-value, prime residential loans.
Iain Cornish, chief executive of Yorkshire Building Society, says: “We are looking forward to welcoming Egg’s mortgage and savings customers to the Yorkshire.
“Continuing to provide them with the outstanding service, administration and value that they have been used to, and which is consistent with our own approach, will be a priority for us and we will work closely with Egg to ensure that customers are kept fully informed throughout this transfer process.”
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