Norwich & Peterborough Building Society has confirmed it has been approached by a rival mutual society about the possibility of a merger.

The news follows speculation on various social media sites that the mutual is on the verge of making an official announcement. It comes just weeks after the society said it was confident it could continue without merging despite a ‘super complaint’ from a claims handling firm over the mis-selling of Keydata structured products.

In a market statement, N&P said it has received a number of approaches from parties in connection with a possible merger and the possibility for the injection of new capital.

It said, ‘Like other responsible organisations, the board continually keeps under review, with its long-standing advisers, Fenchurch, all options for the Society that could enhance the interests of members, customers and employees.’

Rachel Wylie, spokesman for the Building Societies’ Association, said investors shouldn’t be spooked by activity in the sector.

She said, ‘There have been mergers in the past and there may well be more in the future. We don’t regard it as a weakening of the sector because members remain with a mutual and that will continue.

‘We have 49 societies up and down the country. We have had three or so mergers in the past year but we are stronger and a bit leaner.’