Nationwide merges with Cheshire and Derbyshire - commercial mortgages

09 September 2008

Nationwide has announced that a merger will take place with the Derbyshire and Cheshire building societies.

The two firms' combined membership of 925,000 will now be taken over by the bigger company.

Both approached Nationwide separately after a review of their finances.

Derbyshire was expected to report a pre-tax loss of £17 million for the first half of this year, mainly because of its sub-prime, near-prime and commercial mortgages sector.

It is hoped that by combining the organisations, financial security can be achieved for all involved.

Chief executive of Nationwide Graham Beale stated: "[Both companies] have independently concluded that a merger with Nationwide is in the best interests of their savers and borrowers."

The Cheshire currently employs around 800 staff. It was established in 1870 in the northern town of Macclesfield and was the 11th largest UK building society before the merger plans were revealed.