Nationwide has bought the Scottish building society, Dunfermline.

In a statement released today (30 March), Nationwide confirmed its takeover of Scottish building society, Dunfermline, including branches, good loans and deposits.

Dunfermline had been put up for sale recently after reporting losses of £26 million.

Nationwide struck up the deal less than 48 hours after the government announced that it was being put up for sale.

Nationwide has taken over around 300,000 Dunfermline accounts, its prime mortgage lending book and its head office, branches and retail sites. All employees are now Nationwide staff members.

Dunfermline’s social housing portfolio has been transferred to a limited liability company owned by the Bank of England.

The remainder of the building society, deemed the risky business assets, has been placed into a Building Society Special Administration Process, which will be managed by KPMG administrators.

In a move to cause little disruption to customers, the Dunfermline brand will remain in place and all existing channels such as branches, telephone and post banking will continue as normal.

Graham Beale, Nationwide’s Chief Executive, said: “Nationwide is in a unique position by virtue of its size and financial strength, to provide support to Dunfermline and we regard it as both responsible and commercially beneficial to undertake this transaction.

“This transaction excludes high risk assets: commercial loans and some residential loans were not transferred, and the transaction will enhance the overall value to Nationwide’s membership over the medium term.”

On the Dunfermline website (www.dunfermline.com), the company answers all potential questions customers may pose. At the moment, Dunfermline customers with up to £50,000 in savings as well as £50,000 in Nationwide will receive protection for both accounts. The FSA will review the situation at the end of September 2009.