Engage Mutual has confirmed it is courting a merger with Family Investments that would create one of the UK’s largest mutuals with over 2 million customers.
Engage Mutual’s board made a formal recommendation that it merge with Family Investments in a move that would give the combined group around £6bn in assets under management.
As a customer-owned organisation, Engage will write to members and ask them to consider and vote on the proposed merger in the coming weeks.
Members of both boards and executive teams represented in the new organisation. It is envisaged that current Engage chair Christina McComb would become chair of the joint organisation while Family chief executive Simon Markey would become chief executive.
Engage says the enlarged business would benefit from greater economies of scale through operational efficiencies, offering enhanced new business opportunities and a larger and improved capital base.
McComb says: “It is clear to the board that to join forces with Family would be in the long term best interests of our members. A merger with Family would accelerate our strategic intent to create a customer-owned business that delivers unmatched value, service and customer benefits. We believe that combining our businesses would demonstrate the value of the mutual model through consolidation of our considerable individual financial strengths while maximising joint skills and capabilities to deliver a broader range of products and services to help families of all ages at key life stages.”
Engage chief executive Peter Burrows says: “What matters to us is what matters to our customers. We believe being stronger together as a single business is the best way for us to deliver greater value, long term strength, and make a positive difference to the lives of our customers and their families. We will now seek the approval of our membership to merge with Family on this basis.”