In 1995, following a decision by its members, Cheltenham & Gloucester
Building Society converted from a mutual society to a plc and became part
of the Lloyds Bank Group.
Cheltenham & Gloucester
the demutualisation was groundbreaking. Although Abbey National had converted
and floated on the Stock Exchange six years earlier, it was C&G's conversion
and acquisition that provided the catalyst for the series of demutualisations
and acquisitions that took place over the next two years with Halifax, Woolwich,
Northe rn Rock and Bristol & West all converting from building society
status.
Cheltenham
& Gloucester
As well as delivering cash windfalls to members, C&G's conversion opened
up a whole new realm of retail sales to the lender. Within a few months, C&G
was selling its mortgages through every Lloyds branch in the UK, giving it
the biggest distribution network of any lender. When Lloyds merged with TSB
a few months later, C&G began selling its products through the ir branches,
too.
Cheltenham
& Gloucester
While remaining focused on its core business of mortgages and investments,
C&G, now the UK's thirdlargest mortgage lender, has massively expanded
its customer base and become a key component of one of the world's bestknown
financial services providers.
