Portman acquires Greenwich society

Portman, one of the most vehemently pro-mutual building societies, is to take over Greenwich Building Society later this year, the two organisations announced yesterday.

The takeover, officially called a merger, will lead to payments of 5 per cent gross on the balances of savers, up to a maximum of pounds 2,500. Borrowers will receive a pounds 200 bonus if Greenwich members approve the deal in June.

Ken Culley, chief executive at Portman, said: "The merger will be beneficial to members of both societies and will add further strength to Portman, already recognised as a leading society in the South of England."

The deal would add Greenwich's seven branches to the 109 already operated by Portman, which has assets of more than pounds 4bn and is now the UK's 10th largest society.

Greenwich's head office will be used to provide a postal and telephone service to members of both societies.

One City analyst said last night: "This prefigures some of the defensive retrenchments we are likely to see among mutual societies in the next few years."