The proposed merger would create an enlarged Society with more than three million members and 224 branches.
The Board of N&P "strongly recommends" the proposed merger which it believes is firmly in the best interests of members as it offers enhanced security and financial strength for members while maintaining a strong commitment to exceptional customer service; retaining N&P's name and supporting the future of its 46 branches and jobs in the branches.
The Yorkshire has signalled its intention to invest in N&P's branch network as soon as practicable following the merger being completed and will also look to restore N&P's mortgage lending capability.
N&P mortgage customers with loans linked to or on the standard variable rate which is currently 5.35% will be switched to or linked to the Yorkshire standard variable rate which is currently 4.99%, following completion of the merger.
There is no guarantee as to what the Yorkshire's standard variable rate will be in the future.
The proposed merger with Yorkshire Building Society is an ideal geographical fit for N&P with only two of its branches in the same locations as branches operated by the Yorkshire under its own or the Chelsea Building Society name.
The N&P branches are an important factor in the merger for the Yorkshire, with them planning (subject to normal business practice) to keep a branch or agency in all the areas in which N&P currently operates after a two-year commitment period ends.
However N&P stresses that a vote against the merger will mean "further significant cost cutting" involving branch closures and N&P withdrawing certain products and services in order to be able to reinvest in the business.
A helpline to answer member enquiries on eligibility to vote, and any other merger related questions, is available on 0845 128 2822 between 8am and 8pm Monday to Friday or 9am to 5pm on Saturday and members can also email memberoffice@nandp.co.uk.
The 35-page merger booklet - which gives full details of the merger proposal and its implications for members of N&P - and voting pack will be delivered to members from Monday July 11th.
Members have until August 17th to return voting forms and can register their votes online or by returning their voting form in the prepaid envelope in member packs.
They can also vote in person at the Special General Meeting at The KingsGate Conference Centre in Peterborough, on Monday August 22nd.
Gordon Horsfield, Chairman of N&P, said:
"As the merger booklet issued to N&P's eligible voting members states, the Board (of N&P) has undertaken a detailed strategic review of the options for the future of N&P and concluded unanimously that a merger with the Yorkshire is firmly in the best interests of N&P's members.
"In the absence of a merger, further significant cost cutting would be required to generate profitability to reinvest in the business. Some products and services would have to be discontinued and more branches would have to be closed.
"The proposed merger will bring together two building societies with shared values and a strong commitment to delivering long-term member value and exceptional customer service.
"Your Board believes that the enlarged society will offer our members enhanced security by combining the Yorkshire's financial strength as the UK's second largest building society with N&P's regional strength in the East of England.
"The merger requires the approval of our members. Your Board urges you to vote in favour of the proposed merger in order to secure the benefits that the merger would bring."
Of the members who vote, a majority of borrowing members and not less than 75% of shareholding members have to vote in favour for the merger to be approved. If the shareholding and the borrowing members vote in favour of the merger both societies will apply to the FSA for confirmation of the merger.
Any interested party has the right to make representations to the FSA with respect to the proposed merger: details of the process and how to make representations are set out in the merger booklet. The effective date of the merger, subject to the vote and FSA confirmation, is Tuesday November 1st.
N&P started the process of reviewing its future in 2009 in light of the ongoing credit crunch and low interest rate environment.
It concluded it faced an ongoing squeeze on profitability which would restrict its ability to continue to offer a full range of services and products to customers including its attractive current account, mortgages, savings and insurance products.
