OFT approves YBS merger with Chelsea

The OFT said the merger will not be reffered to the Competition Commission because it does not believe the deal will restrict competition.

"Based on the evidence available to it, the OFT considers that no competition concerns will arise," the OFT said ."At the national and regional levels, the parties have a small combined market share of supply in relation to each of the product segments with minimal or small increments in all segments.

"Consequently, the OFT does not believe that it is or may be the case that the merger may be expected to result in a substantial lessening of competition within a market or markets in the United Kingdom."

The merger, which has yet to be voted on by both societies' members, will create a 35bn mutual.