Yorkshire Building Society Agrees to Acquire Egg's Mortgage and Savings Business
Yorkshire Building Society announced that it has entered into an agreement with Egg Banking plc, a subsidiary of Citigroup Inc., to acquire its mortgage and savings business, comprising a £2.5 billion* savings book and a £430 million* mortgage book. As part of the transaction the Yorkshire will also acquire the Egg brand.
Yorkshire Building Society, which is the UK's second largest building society with assets exceeding £30 billion, focuses on providing its members with financial security and long-term value across a comprehensive range of products backed up with excellent customer service. It has a national branch network and has invested substantially in its innovative internet and telephone operations, ensuring members can deal with the Society in whichever way they choose. The acquisition of the Egg savings and mortgage books is in line with Yorkshire's strategy to take advantage of opportunities which it considers to be in the long-term interests of its current and future members.
The acquisition is to be implemented by a banking business transfer under Part VII of the Financial Services and Markets Act 2000. This process is subject to approval by the High Court, which amongst other considerations will take into account the opinion of the Financial Services Authority (FSA). The acquisition is expected to complete in the fourth quarter of 2011.
Benefits of the transaction to Egg customers
- Egg savers and borrowers will become members of Yorkshire Building Society on completion of the transaction
- Egg customers will benefit from becoming part of an independent mutual focused on providing excellent customer service and good, long term value products
- Egg savers and borrowers will have the security and stability provided by the Yorkshire, one of the UK's strongest financial institutions
Benefits of the transaction to Yorkshire Building Society members
- The transaction will enhance Yorkshire's ability to deliver greater value through a wider product and service offering
- The combination of Yorkshire and Egg's product capabilities in the savings market will lead to further innovation and enhance the Society's product range
- Egg's substantial savings book, which is predominantly internet savings, will enhance Yorkshire's existing funding position and increase its capacity to lend
- Egg's mortgage book comprises high quality, low loan-to-value, prime residential loans
- Yorkshire Building Society will continue to be owned and run for the benefit of its current and future members, offering good, long-term value products backed up with excellent customer service
Iain Cornish, Chief Executive of Yorkshire Building Society, said: "We are looking forward to welcoming Egg's mortgage and savings customers to the Yorkshire. Continuing to provide them with the outstanding service, administration and value that they have been used to, and which is consistent with our own approach, will be a priority for us and we will work closely with Egg to ensure that customers are kept fully informed throughout this transfer process."