Coventry Building Society’s £780 million acquisition of the Co-operative Bank has received regulatory approval.
The transaction will grant Coventry Building Society access to millions of customers and approximately £89 billion in assets. Initially announced in May, the deal is projected to finalize on 1 January 2025, pending approval from the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).
The integration of the two organizations is expected to take several years, with both retaining their separate licenses during the initial phase. This acquisition signifies the Co-operative Bank’s return to a mutual structure, moving away from a model reliant on shareholders and investors.
In a statement, the Co-operative Bank confirmed that all products and services would remain unchanged for its customers, with Co-operative customers eventually becoming members of Coventry Building Society.
The Co-operative Bank serves around 2.5 million retail and business customers across 50 branches. Meanwhile, Coventry Building Society manages approximately £50 billion in mortgages and £48 million in savings.
Nick Slape, CEO of Co-operative Bank, remarked, “We are pleased to achieve this significant milestone in bringing together both businesses, which share a powerful mutual/co-operative heritage. The combined entity will provide improved products, value, and service for both existing and new customers.”