Family Investments and Engage Mutual have agreed the terms of a merger that would create one of the UK’s largest mutual groups, with both now seeking approval from their respective members to create the new business.
The combined company would have over 2m members, hold approximately £6bn of assets under management and have in excess of £130m of capital reserves.
Members of both boards and executive teams would be represented in the new organisation, with Family chief executive Simon Markey becoming the new chief executive and Engage Mutual’s chairman Christina McComb taking on the chairman role at the merged business.
Mr Markey said the decision follows “many months of careful consideration”, which concluded that Engage’s culture and customer base complement’s Family’s.
“This is about two strong mutuals joining forces to create a bigger, more effective business, delivering greater value and long term benefits for our members and communities. We passionately believe this merger will provide this opportunity for existing and future members of both organisations.”
Ms McComb said that joining forces would be in the long term best interests of members. “A merger with Family would accelerate our strategic intent to create a customer-owned business that delivers unmatched value, service and customer benefits.”
Engage noted that should the transaction proceed, the future of £1m customer benefit fund the Engage Foundation, would continue with the commitment of £5m over 5 years.
The proposal remains subject to regulatory approval, legal conditions and support from the members of both companies. Should all go to plan, the merger is expected to conclude in the first half of 2015.
