Building society in merger talks (From Swindon Advertiser)

Building society in merger talks

2:00pm Tuesday 9th March 2010 in

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STROUD and Swindon Building Society is in merger talks with its larger rival Coventry.

And although it has been claimed the discussions are at an early stage – one certainty is a new industry £20bn ‘heavy hitter’ would be created if the deal went ahead.

Linda Will, of Stroud and Swindon, confirmed the talks and said the firm’s board had to consider any proposal. She said: “We are in very early stage talks about which there is no detail.”

A statement issued by the Coventry Building Society, the UK’s third largest, said: “Any merger, if agreed, would require the formal approval of Stroud and Swindon’s savings and borrowing members as well as confirmation by the Financial Services Authority.”

The statement added that no action by members was required.

Stroud and Swindon has 265,000 members and just under £3bn in assets, employs 400 people across its Stroud headquarters and branch network of 22 offices and 21 agencies in the south west, including three branches in the Swindon area.

The Coventry has 1.2 million members and a network of 48 branches located throughout the Midlands. The company said there was no certainty of a deal – which would only go ahead if both organisations benefited.