Over three times the usual turnout voted at this year’s AGM with votes in favour of the merger representing 93.0% of eligible shareholding members who voted and 92.6% of eligible borrowing members who voted.
Subject to confirmation by the Financial Services Authority (FSA), the effective date for the merger is expected to be 28 August 2007. Merger bonus payments will be mailed to qualifying members within 28 days of this date.
Following the merger, Nationwide Building Society will have assets of more than £150 billion. Serving more than 13 million members, it will be the second largest mortgage lender and the second largest retail savings provider in the UK.
Robert Sharpe, chief executive of Portman Building Society, said: “I am very pleased that Portman members have clearly supported the Board’s recommendation to merge with Nationwide Building Society with 93.0% of shareholders’ votes cast and 92.6% of borrowers’ votes cast supporting the merger. In addition to the merger bonus payment, Portman members will benefit from a greatly increased branch network and access to a wider range of attractively priced products and services.”
Graham Beale, chief executive, Nationwide Building Society, added: “I look forward to welcoming Portman members to Nationwide. The enlarged Society will be a formidable presence on the high street, competing with the retail banks whilst retaining the benefits of a highly successful mutual. It will deliver real value to its members and provide a compelling alternative to the retail banks.”
