Coventry and Stroud & Swindon in merger talks
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Coventry Building Society and Stroud & Swindon Building Society are discussing a potential merger that would create a lender with combined assets of almost £21bn.
Coventry, the third largest building society in the UK, posted a pre-tax profit of £56.2m for 2009, more than doubling its 2008 profit of £26.4m.
Stroud & Swindon, the country’s 11th biggest society, is expected to publish its 2009 results later this month but reported a £3.4m pre-tax loss for 2008.
Linda Will, sales and marketing director at Stroud & Swindon, says discussions between the mutuals started several weeks ago.
She says: “Talks are at an early stage and this is far from a done deal. It’s going to take some time before we get there, if we get there.”
Five of the top 10 societies have either featured in merger deals or are in the process of merging.
Last December Yorkshire Buil-ding Society announced its planned merger with Chelsea Building Society, while Skipton Building Society revealed last month that it is to merge with Chesham Building Society.
Readers' comments (2)
James Healy | 16 Mar 2010 10:17 am
Ihave a mortage with Stroud&Swindon if the merger goes ahead is there any financial gain to be had
Regards
James
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Grey Haired Underwriter | 18 Mar 2010 4:14 pm
James - I would suggest that your major financial gain is that you will still have a lender. I think that you should be aware that this is one of those combinations that might be loosely designated as a merger.
I don't think that the concept of paying members for mergers will everhappen again - the carpetbagging days are gone and everyone is doing what they can to survive.
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