The Yorkshire and Chelsea building societies announced yesterday their merger plans that will create Britain’s second biggest building society behind Nationwide.

The deal, which will create enlarged lender with assets worth 35 billion pounds, will also result into many job losses.

The enlarged group, which will have 2.7 million members, will be known by the name of Yorkshire Building Society, though Chelsea will be retained.

Under the deal, Chelsea’s debt of 200 million pounds will be converted by Yorkshire into new financial instruments with a face value of 100 million pounds. But, there will be no windfall for members of either society.

The group claimed that the deal was a strategic merger and not a rescue of Chelsea by the Yorkshire.