OFT clears way for CFS/Britannia merger

THE Office of Fair Trading has decided not to refer the ground-breaking merger of Co-operative Financial Services with Britannia Building Socierty to the
Competition Commission.

The creation of a so-called ‘super mutal’ was announced last month. The combined organisation will have more than 12,000 employees and 300 branches.

New legislation had to be brought in to allow the deal to happen as a transaction of this sort has never happened before. The Butterfill Act – will become law next month – makes it possible for different types of mutuals – building societies, co-operatives and friendly societies – to join forces.

Despite the merger the two organisations will continue trade under the Britannia and CFS brands.

The merger is expected to save around £60m a year in costs which will be passed on to customers through more competitive rates and increased member dividends.