July 28 2016 Latest news:
Ed Foss, Senior writer
Monday, July 25, 2011
Yorkshire Building Society has announced that it has entered into an agreement with Egg Banking to acquire its mortgage and savings business.
If the sale goes ahead, Egg’s £2.5bn savings book and £430m mortgage book will transfer to Yorkshire, as will the Egg brand.
Egg is currently a subsidiary of Citigroup. Yorkshire is the UK’s second largest building society with assets exceeding £30bn and a national branch network.
The move is “good news” for consumers, according to one analyst, although there have already been fears raised about Egg jobs.
The acquisition still needs to be sealed by the High Court, a step which will include taking into account the opinion of the Financial Services Authority. The acquisition is expected to complete later in the year.
Yorkshire has already tied up with Chelsea and Barnsley building societies and is currently awaiting approval for a merger with Norwich & Peterborough building society.
Andrew Hagger, of Moneynet, welcomed the acquisition news and said: “The UK desperately needs increased competition amongst financial services providers as consumers look for a trusted brand to deliver on both rates and service.
“On the face of it, this looks like a smart move from Yorkshire and will certainly raise a few eyebrows amongst its competitors.
“The acquisition of a new £2.5bn savings book will enable one of the most competitive mortgage providers in the UK to expand its lending activities to a much wider audience.
“Yorkshire dominates the mortgage best buy tables.
“It’s been a rocky few years for building societies, but Yorkshire is proving that the sector still has plenty of fight left in it and that it has the vision and determination to be a serious player on our high streets.”
Egg savers and borrowers will become members of Yorkshire Building Society on completion of the transaction.
Iain Cornish, chief executive of Yorkshire Building Society, said: “We are looking forward to welcoming Egg’s mortgage and savings customers to the Yorkshire.”