The Prudential Regulation Authority (‘PRA’) has today announced their confirmation of the merger of Newcastle Building Society (‘Newcastle’) with Manchester Building Society (‘Manchester’). The confirmation follows announcement by the Boards of both societies in March 2023 that they had entered into a legally-binding agreement to merge by way of a transfer of Manchester’s engagements to Newcastle. The merger was conducted in accordance with the process set out in the Building Societies Act 1986 and will become effective on 1st July 2023.
Manchester’s Chief Executive Officer, Paul Lynch stated:
“Following rigorous due diligence, a formal process, and the confirmation of the merger from the PRA, we are delighted that Manchester Building Society members and our Manchester colleagues can look forward with certainty and optimism to the opportunities presented as part of a larger, financially robust Society.”
Andrew Haigh, Chief Executive Officer at Newcastle said:
“This merger is important in maintaining a strong building society sector in the UK and provides clear benefits to both societies. Newcastle Building Society is a purpose-powered, growing organisation with an ambitious strategy for the future.
“The Newcastle Board, executive team and colleagues across the business look forward to welcoming the members of Manchester as full members of Newcastle. We also look forward to welcoming our new Manchester colleagues as we work together towards our continued growth and success, listening to our members, and driving the value that our members want to see.”
This announcement contains inside information for the purposes of article 7 of the market abuse regulation (596/2014/EU) as the same has been retained in UK law as amended by the market abuse (amendment) (EU exit) regulations (SI 2019/310) (UK MAR).
The person responsible for arranging the release of this announcement on behalf of Manchester is Mark Winterbottom (Finance Director) and on behalf of Newcastle is David Samper (Chief Financial Officer).
Newcastle Building Society has c345,000 members and 31 branches. It employs c1400 people and at 31st December 2022 its total assets were c£5.3bn making it the 8th largest Building Society in the UK.
Manchester Building Society has c11,000 members and no branches. It employs 44 people and at 31 December 2022 its total assets were c£0.2bn making it the 41st largest Building Society in the UK.
Addleshaw Goddard LLP has acted as legal adviser to Manchester and TLT LLP has acted as legal adviser to Newcastle.