This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7603411.stm

The article has changed 4 times. There is an RSS feed of changes available.

Version 1 Version 2
Nationwide will merge with rivals Nationwide will merge with rivals
(about 1 hour later)
The Nationwide Building Society has said it will merge with two of its smaller rivals, the Derbyshire and Cheshire Building Societies.The Nationwide Building Society has said it will merge with two of its smaller rivals, the Derbyshire and Cheshire Building Societies.
The Nationwide, the UK's biggest mutual lender with 14 million members, is to step in to support the two firms with the approval of financial regulators.The Nationwide, the UK's biggest mutual lender with 14 million members, is to step in to support the two firms with the approval of financial regulators.
Smaller lenders are under growing pressure due to the credit crunch. Smaller lenders are under increasing financial strain due to the credit squeeze and rising mortgage defaults.
The BBC's Business Editor Robert Peston said members of the two smaller firms would not get any windfall payments. Members of the two smaller firms will not get any bonus payments.
The Derbyshire and Cheshire had separately approached the Nationwide to help them survive the tough economic climate. The deals are expected to be completed by the end of the year subject to approval by the Financial Services Authority and the Office of Fair Trading.
Both firms said they expected to make a loss in the first six months of 2008 as a result of the declining UK property market. 'Commercially beneficial'
The Derbyshire and Cheshire had separately approached the Nationwide to help them survive the tough economic climate and seek protection for their borrowers and savers.
Both firms said they expected to make a loss in the first six months of 2008 as a result of the declining UK commercial and residential property market.
The Derbyshire has assets of £7.1bn, 50 branches and 485,000 members. The Cheshire has assets of £4.9bn, 45 branches and more than 440,000 members.The Derbyshire has assets of £7.1bn, 50 branches and 485,000 members. The Cheshire has assets of £4.9bn, 45 branches and more than 440,000 members.
The merger will create an organisation with almost 15 million members, around 1,000 retail outlets, £191bn of assets and £122bn of retail deposits.
"Nationwide is in a unique position because of its size and financial strength to provide support, and we regard it as both responsible and commercially beneficial to undertake these mergers," said Nationwide chief executive Graham Beale.
When the Nationwide merged with the Portman last year, 1.2 million Portman members pocketed windfall sums of between £200 and £1,000.