Societies announce merger

The proposed merger will be subject to the agreement of the members of Clay Cross Building Society and to the completion of statutory procedures. The Derbyshire has applied to the Financial Services Authority for consent to proceed with the merger by board resolution. It is expected that Clay Cross will transfer its business to The Derbyshire by the end of December 2003.

The main points of the proposed merger are:

The combined society will remain a mutual owned by its members and will be named Derbyshire Building Society.

A bonus will be payable to qualifying members of Clay Cross. The details of the amount and how this will be calculated will be announced at a later date.

Clay Cross has a sole branch in Eyre Street, Clay Cross; The Derbyshire already has a branch in the town on Market Street and other branches throughout the area. It is envisaged that following a suitable branch refurbishment some time after the merger, the combined society will use the Eyre Street office and the Market Street branch will be closed.

All Clay Cross employees will transfer across to The Derbyshire and there will be no compulsory redundancies as a result of the proposed merger.

Mike McDermott, Clay Cross Chief Executive, said of the proposed merger: “We have faced ever increasing challenges in a fiercely-competitive market place – one where organisations are working with ever lower cost bases and with increasingly sophisticated distribution channels.

“The positive approach taken by Clay Cross over the years has seen us record many achievements of which we are tremendously proud. We now recognise however that to maintain future efficiency, the needs of the Society and our members are best served by finding a partner which shares our commitment to high quality customer service.

“We therefore approached The Derbyshire for a merger as we believe it is best placed to offer our members security under a mutual umbrella, and as one of the UK's top 10 building societies can offer a greater range of products and services.”

Peter Richardson, Chief Executive of The Derbyshire, says: “The Derbyshire is a natural home for members of Clay Cross seeking the support and benefits of belonging to a Society that can offer a wider product range, greater access to products, competitive rates and excellent customer service.

“We are delighted that Clay Cross has chosen this Society. The Derbyshire is ideally positioned to understand the needs of customers from Clay Cross and the communities beyond and we are looking forward to welcoming their members in due course.”