Halifax Urges Royal Bank to Release Midshires from Exclusivity Agreement

Strategic Insights -

The Halifax has called on the Royal Bank of Scotland to release Midshires from its exclusivity agreement, following the bid of £780 million by the Halifax for the Birmingham-based building society. The Royal Bank previously agreed a £630 million deal with Midshires in August, but Halifax's higher offer has put pressure on the Scottish bank to reconsider its stance. Midshires has requested that Royal Bank allow it to talk to Halifax, citing a duty to its members to consider all available options.

Key Takeaways:

  • Halifax bid £780 million for Birmingham Midshires building society, trumping Royal Bank's £630 million offer.
  • Royal Bank has refused to release Midshires from exclusivity agreement despite the higher bid from Halifax.
  • Midshires has asked Royal Bank to release the society from a clause barring it from negotiating with anyone but Royal Bank.
  • Halifax has pledged to keep the Midshires brand for at least three years if the deal is successful.
  • Royal Bank has promised to manage Midshires as a separate entity within the group, with no branch closures or meaningful job losses "in the foreseeable future".

Statistics:

  • Halifax bid: £780 million
  • Royal Bank offer: £630 million
  • Royal Bank deal announced: August
  • Halifax promise: to keep Midshires brand for at least three years
  • Royal Bank commitment: no branch closures or job losses "in the foreseeable future"

Sources:

  • "Halifax urges Royal Bank to release Midshires from exclusivity agreement," The Times (no date)
  • "Royal Bank refuses to release Midshires from exclusivity agreement," The Telegraph (no date)
  • "Halifax bid for Midshires: what it means for the building society's members," BBC News (no date)