Newcastle Building Society and Manchester Building Society have agreed to merge through a transfer of Manchester’s engagements to Newcastle.
The move comes as Manchester has not undertaken new lending since 2013 and faces uncertainty around its long-term future.
The merger is expected to benefit Manchester savers and borrowers with increased product choice and interest rates, and make them part of a mutual that continues to grow strongly.
The merger is also expected to enhance Newcastle’s growth strategy and its continued commitment to high levels of customer service and delivery of member value.
The PRA has approved the request by the Manchester Board to direct that the transfer of its engagements to Newcastle can proceed by a Board resolution, which means that a vote by members of Manchester will not be required.
The merger is expected to become effective on July 1st, 2023, subject to the execution of a legally-binding instrument by each society, the boards of both Societies passing a resolution to proceed with the merger, and the PRA confirming the merger.
