Coventry Building Society buys Co-op Bank for £780m

Coventry Building Society has completed its £780m deal to buy the Co-operative Bank but will not give its members a vote.

The acquisition is subject to approval from financial regulators but is expected to close in early 2025.

The combined financial institutions will have millions of customers and assets worth around £89bn.

Both organizations will continue to operate under their current names and branding while they are integrated, which is expected to take several years.

The deal means the Co-op Bank will return to a mutual structure, where it is owned by individual members rather than shareholders and investors like most UK banks.

The Co-op Bank was part of the wider Co-op group more than 10 years ago before it was broken up when it fell into deep financial difficulty.

It was bailed out by US hedge funds and is currently owned by a group of private equity investors.

Both brands will remain on the high street for as long as it takes to bring them together, but they said “there will inevitably be change over time”.

Ultimately, they want Co-op Bank customers to become members of Coventry society.

Coventry Building Society said it would benefit from having more customers, mortgage and savings balances, a wider set of financial products, including current accounts, and more branches spread across the country.

It said it had “considered carefully” whether to give its members a chance to vote on the purchase, but had “conclusively determined” it was not necessary.

“In making this decision, the CBS (Coventry Building Society) board was informed by member surveys and focus groups which clearly signaled their priorities as maintaining our value proposition and service quality,” the company said.

Coventry Building Society chief executive Steve Hughes said the two institutions combined “will be able to deliver more value to more people over the coming years”.

Nick Slape, chief executive of Co-op Bank, said the deal was “a natural next step and presents an exciting opportunity”.

Coventry Building Society manages approximately £50bn of mortgages and £48m of savings.

Co-op Bank has approximately 2.5 million retail and business customers and 50 branches across the country.