Britannia members back CFS merger

THE ground-breaking merger of Co-operative Financial Services with Britannia Building Society has moved closer still.

Members of the Staffordshire-based society yesterday overwhelmingly backed the deal to create a £70bn super-mutual.

More than 450,000 Britannia members voted at the society’s annual general meeting in Birmingham. More than 88.%  savings members voted in favour, well over the 75% majority required, and 86.2% of borrowing members supported the deal, well over the 50% majority required.

The merger, which has already been approved by The Co-operative Group and CFS boards, is expected to become effective on 1 August, subject to confirmation by the Financial Services Authority.

In the first-ever merger between different types of member-owned businesses, the new organisation will combine the strong CFS personal and corporate banking, insurance and investment expertise with Britannia’s extensive high street presence and savings and mortgage strength.

The merged business will have £70bn of assets, nine million customers, 12,000 employees, more than 300 branches and 20 corporate banking centres.

It will be led by former Manchester accountant and Britannia group chief executive Neville Richardson. Bob Burlton, the current CFS non-executive chairman will chair the new board.

Mr Richardson said:  “I’m delighted that Britannia members have endorsed their Board’s recommendation to merge with CFS. 

“They recognised that the combined business will offer them everything they love about Britannia – we’ll remain mutual, we’ll maintain an extensive branch network and we’ll continue to share profits with members – while offering them enhanced products and services, the benefits of being part of a larger group and the chance to earn even greater member rewards.”

The new business will be a wholly owned subsidiary of The Co-operative Group. The merger  is expected to deliver more than £60m a year in efficiency and revenue benefits.