Coventry Building Society and Co-operative Bank to ‘merge’ as major deal is signed

Two major banks are to be “brought together”, it has been announced. Coventry Building Society has signed contracts with the sellers of The Co-operative Bank to buy the Bank for £780m, subject to obtaining approval from UK financial regulators.

The acquisition, which will create an £89 billion mutual financial services organization serving more than 4.5 million UK customers and members, is expected to close in the first quarter of 2025. The company’s intention is that, over a period of time, eligible customers of the Bank will become members of the society.

Bringing together the Society and the Cooperative Bank will:

• Enable the Society to leverage its financial size and diversified funding base to: Continue to deliver strong member value; and increase investment to continue to deliver outstanding service in branches, online, telephone and mobile services

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Chairman of Coventry Building Society, David Thorburn said: “I believe this is a transformational moment for members and customers of the Society and the Co-operative Bank. We are building on our shared heritage and creating a stronger joint business that will deliver results in the best interests of our current and future members.”

Coventry Building Society chief executive Steve Hughes added: “By bringing Coventry Building Society and The Co-operative Bank together, we will be able to deliver more value to more people over the coming years. I am excited about the opportunities ahead. , most importantly, our ability to support the great value and outstanding service that matters most to our members.”

The Co-operative Bank will become a subsidiary of Coventry Building Society on completion and both organizations will continue to operate under their current names and branding while integration work takes place. This is expected to last for several years, during which time members and customers of both organizations will enjoy the protection of the Financial Services Clearing Scheme (FSCS) as a customer of each organization, as is the case at present.