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Old and smallest building societies to merge

Category: Scotland Business News — Gary Cain on August 22, 2012

One of the oldest building societies in Scotland has announced that it is to merge with one that is among the smallest, in a deal that could result in the loss of six jobs.

The Scottish Building Society (SBS) is one of the oldest in the country, which operates a total of six branches across the country along with a total of 70 agencies.

Meanwhile, Century is one of the smallest. It does not have any branches, operating exclusively from its headquarters in Edinburgh. However, the SBS also has its operational headquarters in the capital. As yet there has been no explanation as to what will happen to the six members of Century’s staff, though the Century office will be closing.

The risk of being acquired or having to merge with a larger operator is something that many companies are facing. However, through looking at new options for commercial finance in Scotland, many are averting this risk. Furthermore, many are even managing to acquire rivals themselves, with invoice factoring helping some in this regard.

After the deal, the name ‘Scottish Building Society’ will be retained and talking about the venture, its chairman, Alexa Henderson, said:

“The members of both societies will benefit from the financial strength of the combined society…”

Henderson went on to add:

“The Scottish will continue to operate as it always has – a traditional building society.”

Once the deal is complete, the two societies will have a combined membership of 40,000, with a total value in assets of more than £400 million.

The deal still needs to be given the all clear by regulators before all details can be confirmed.

'Disclaimer: The information contained in these articles is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.

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