Britannia members give green light to CFS merger

The merger between Britannia Building Society and Co-operative Financial Services has been given the go ahead.

Members of Britannia Building Society have voted in favour of a merger with Co-operative Financial Services (CFS).

Almost 88 per cent of savings members said they supported the deal, while 86 per cent of borrowing members also gave it the green light.

The merger, which will create a new super-mutual that will act as an "ethical" alternative to shareholder and government-owned banks - has already been approved by CFS.

Britannia members cast their votes at the group's annual general meeting at the Birmingham National Exhibition Centre this week.

Neville Richardson, chief executive of Britannia, said he was "delighted" that the building society's members have endorsed the deal.

"They recognised that the combined business will offer them everything they love about Britannia," he remarked.

Mr Richardson confirmed that Britannia will remain mutual, that it will maintain its existing branch network and that it will continue to share profits with its members.

As part of a larger group, it will also be in a position to offer enhanced products and services and provider greater member rewards.

"The combined and complementary strengths of our businesses will offer customers a strong, fair and ethical alternative to banking PLCs," he remarked.

Subject to confirmation by the Financial Services Authority, the merger will become effective on August 1st this year.

The combined business will have £70 billion worth of assets, more than 300 branches, 20 corporate banking centres and nine million customers.

Last month, the FSA confirmed a merger between Scarborough and Skipton Building Societies after commercial agreements between the two groups were reached and given the go ahead by shareholders.