Anchor and Hanover are in advanced merger talks, with the combined entity set to become one of the largest providers of residential care for older people in the UK.

Under the proposals, the two organisations will come together as the Anchor Hanover Group.

In a joint statement, Anchor Chief Executive Jane Ashcroft CBE and Hanover Chief Executive Dame Clare Tickell said:

“People can look forward to living longer than ever before. More specialist housing and care will be needed going forwards, with new types of services.

“At Hanover and Anchor, we understand these changing needs. We have ambitious plans and want to provide more services, driven by the needs and aspirations of the growing number of older people.

“A new, bigger organisation has the potential to provide the best value-for-money services for our customers now and in the future. It would also enable us to offer better career options for colleagues, and help us attract and retain great people.

“Crucially, a single, bigger organisation could build more properties for older people than we could remaining as separate organisations. This could include social rented, shared ownership and outright sale new homes.”

Ashcroft is Chief Executive Designate of the new organisation, while the Chair designate is Dr Stuart Burgess CBE, currently Chair of Hanover.

Anchor chair Pamela Chesters CBE had already announced last year that it was her intention to stand down from Anchor’s Board.

Dame Clare chose not to pursue the Chief Executive role for the new organisation, should the merger proceed, as she believes the timing is right for a change, and to take up other opportunities.

In addition to its housing to rent and to buy and extra-care services, the new organisation would continue to be a major provider of residential care to older people.

The organisations are now seeking feedback from customers and stakeholders and hope to report back in the late summer/autumn.