Stroud & Swindon and Coventry confirm merger
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The board of Stroud & Swindon Building Society has agreed to merge with Coventry Building Society, the UK’s third largest building society.
The merger, which is subject to the approval of Stroud & Swindon’s eligible members as well as confirmation by the Financial Services Authority, is expected to become effective on 1 September 2010.
Both societies operate intermediary only brands, Stroud & Swindon has In The Loop Mortgages and Coventry has Godiva Mortgages.
Linda Will, sales and marketing director at Stroud & Swindon, says it is too early to say what will happen to the brands.
She says: “At this point it is too early to say. What happens after today’s announcement has not yet been the subject of any in-depth planning.”
The enlarged society, will have assets of over £21bn and 91 branches and agencies across the Midlands and South West of England.
The society, whose head office will be in Coventry, will be known as Coventry Building Society with the Stroud & Swindon name retained and operated as a separate and distinct brand.
The branch and agency network of Stroud & Swindon will be maintained without any closures for at least 12 months from the date of the merger. There will also be no redundancies among branch staff as a result of the merger.
David Harding and David Stewart, currently chairman and chief executive respectively of the Coventry, will be chairman and chief executive of the enlarged society.
Glyn Smith, currently a director of Stroud & Swindon Building Society will join the board of Coventry Building Society as a non-executive director.
David Stewart, chief executive of Coventry, says: “Coventry’s performance over the last three years has demonstrated the strength of our traditional building society model. I believe that the merger with Stroud & Swindon will help us build on recent successes and bring the benefits of our prudent and member-focussed approach to a wider membership.”
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Readers' comments (1)
Grey Haired Underwriter | 23 Mar 2010 11:23 am
Interesting that they still call it a merger. I was interested in the comment that there will be no redundancies among Branch Staff and that the Head office is to be in Coventry. Interesting that no mention is made of what will become of the stroud's Head office or its staff - there's usually a comment that the former Head Office will become an administration centre or similar.
Merger or FSA inspired rescue. Form your own opinions
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