Yorkshire Building Society is set to finalise a deal to take over lossmaking rival Chelsea in the latest sign of consolidation in the UK’s troubled mutual sector. A combined Yorkshire and Chelsea would be a strong number two to market leader Nationwide. Significantly, Chelsea will use a new kind of contingent convertible, or CoCo, instrument as part of the merger deal, in a structure that will be seen by regulators, and other societies, as a model for further dealmaking in the building society sector.

This entry was posted by Gwen Robinson on Wednesday, December 2nd, 2009 at 4:30 and is filed under Capital markets, M&A. Tagged with Chelsea, Yorkshire Building Society. Edit this entry.