EBS and Irish Nationwide discuss merger
Monday, 23 November 2009 23:41
EBS Chief Executive Fergus Murphy has confirmed that merger talks with Irish Nationwide will begin this week.
In an interview with RTÉ News, he said that under building society regulations there is a clause for a transfer of engagement.
'This would allow two building societies to merge. That will be used to let this take place. The balance sheet of Irish Nationwide Building Society would transfer to EBS', he explained.
'We have yet to commence formal talks but that is likely to take place very soon,' he added.
Minister for Finance Brian Lenihan has said the State is likely to be a substantial shareholder in the new building society.
It is expected the link-up of the two organisations will require a capital injection from the State.
Mr Lenihan confirmed he has held talks with Irish Nationwide.
He said: 'Clearly, we want to see a viable building society to continue to provide credit in the Irish economy to those who want to buy houses - that's important in terms of the overall banking landscape.
'I did meet the board of Irish Nationwide recently and they indicated their interest in discussions with the EBS, and naturally it's a matter now for those discussions to take place.'
