The Yorkshire and Chelsea building societies confirm they are in discussions over a possible merger.

Two of the UK’s biggest building societies (BS) are in “advanced discussions” over a possible merger which would create a major force behind the Nationwide Building Society. 

The combined force would have assets in excess of £3.5 billion, with nearly 3 million members.

The mutual’s have been forced to dispel rumours which have been circulating in the press about a possible merger and said that both boards are discussing the possibility of an amalgamation.

The Chelsea BS was, however, quick to point out that it continues to be “well-funded and have strong liquidity.” Though it is reported that its Chairman – Stuart Bernau – who was pivotal in the Nationwide merger with Portman, has been reviewing the future of the business.

The merger would bolster the Yorkshire’s position as the UK’s second largest society. It has
two million members and 143 branches nationwide, and together with the Chelsea – the UK’s fifth largest society – both have a solid grounding in the direct mortgage and savings markets.

According to statements on both websites any potential merger would also require the approval of both societies’ members and would also be subject to confirmation by the Financial Services Authority.

More details are expected to emerge as discussions continue.