UK's oldest building society announces merger plans

Greig Cameron

Deputy Business Editor

Thursday 16 August 2012

THE oldest remaining building society in the UK has announced a merger with the smallest one.

SATISFIED: SBS chief executive Gerry Kay says the merger makes perfect sense. Picture: Julie Howden

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GREIG CAMERON DEPUTY BUSINESS EDITOR

The directors of Edinburgh based Scottish Building Society (SBS), founded in 1848, and Century Building Society have agreed in principle on the deal.

The 3500 members of Century, founded in 1899, will vote on proposals at a special general meeting in November.

SBS, which has more than 38,000 members, has applied to the Financial Services Authority to proceed with the planned merger. No bonuses will be paid to members but both sides hope to complete the merger by February next year.The enlarged society will have the Scottish Building Society name while Century's only office, on Albany Street in the Scottish capital, will close.Discussions with Century's six members of staff will take place to clarify their future.SBS chief executive Gerry Kay said: "The economic climate has been dragging on for a while now and boards have to think of the interests of their members."There is a lot of competition in the marketplace and this merger just makes absolute sense."Max Gaunt, chairman of Century, said: "As both societies' head offices are in Edinburgh, the Scottish are the obvious merger partner."SBS has branches in Edinburgh, Glasgow, Inverness, Aberdeen, Troon and Galashiels plus a network of more than 60 agencies in Scotland.It is the 26th largest building society in the UK with assets of more than £375 million. Century had assets of £25 million at the end of 2011.In recent years the sector has seen several mergers including Chelsea Building Society and Yorkshire Building Society plus Co-operative and Britannia.

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UK's oldest building society announces merger plans

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