One Savings Bank confirms £1.75bn merger
Written by Hannah McGrath
Challenger banks One Savings Bank and Charter Court have announced the terms of a £1.75 billion merger set to create one of the UK’s largest specialist lenders.
The deal will hand 55 per cent of shares in the combined company to One Savings Bank shareholders, while One Savings Bank’s chief executive Andy Goulding and chief financial officer April Talintyre will retain their roles in the new company.
Ian Lonergan, Charter Court’s chief executive will be the new company’s integration director for an 18 month period. Sir Malcolm Williamson, currently chairman of Charter Court, become chairman of the new company and David Weymouth, currently Chairman of One Savings Bank, will become the deputy chairman.
Confirmation of the merger, which is backed by the boards of both companies and Elliott Management, the largest shareholder in Charter Court, comes after weeks of speculation that the two lenders could enter into a tie-up.
A statement released by One Savings Bank yesterday said the move was aimed at “Create a leading specialist lender in the UK with greater scale and resources to deploy on growth opportunities.”
It also said it was expected that the combined company would be able to leverage Charter Court’s automation-enabled underwriting approach in conjunction with One Savings Bank’s portfolio-based underwriting capabilities and in-house real estate advisory services.
The merger would result in £22 million of pre-tax cost efficiencies on an annual run-rate basis, the statement said.
David Weymouth, the Chairman of OSB said: “The combination will create a leading specialist lender that we believe will benefit from enhanced scale, product offerings and a robust and diversified funding platform. Both businesses bring complementary strengths which we fully expect will position the combined business to continue to deliver for its customers and shareholders.”