The boss of one beleaguered building society has recently said that branch closures would be inevitable if its members decide to veto its buyout by larger mutual Yorkshire.
Norwich & Peterborough chief, Anne Gunther, warned that if the majority of the 260,000 members of the personal and business bank account provider decide against the takeover, N&P service levels will deteriorate significantly. Upon receipt of their paperwork, these members have until 17 August to cast their vote either by post or online, while a special general meeting will be held for in person voting in Peterborough, Cambridgeshire, on 22 August as well.
A full 75 per cent of the building society’s members must approve of the deal for it to go through. In addition a majority of those who have either personal or business loans with N&P likewise need to give the go-ahead to the takeover.
If approval is given from both borrowers and savers alike, the buyout will go through this coming November, as long as the regulator approves the takeover. All N&P branches will remain open for a minimum of two years and its standard 5.35 per cent variable rate mortgage will be reduced to match Yorkshire’s own 4.99 per cent rate.
Ms Gunther commented on Yorkshire’s ethos, stating that she felt it was big enough to count, yet small enough to care for the well-being of N&P members. The Norwich & Peterborough chief added that she was urging all members of the building society to vote for the takeover.
Ms Gunther was insistent in stating that the keydata scandal that saw N&P award £50 million in compensatory damages had no role to play in the decision to seek takeover from Yorkshire.