Coventry Building Society’s acquisition of Co-op Bank moves forward

Non-binding terms have been agreed for Coventry Building Society to acquire The Co-operative Bank for £780m, it has been confirmed.

Discussions relating to the potential transaction were said to be well advanced, but the Coventry has completed substantive due diligence to its satisfaction and the parties are working together to enter into definitive agreements in due course, although the deal may still not proceed and is subject to the final agreement of terms and regulatory approval.

The combination would create a group with a pro forma balance sheet of £89bn as at 31 December 2023.

The society would seek to integrate the bank gradually over several years.

Coventry Building Society chief executive Steve Hughes said: "This is an exciting moment for the society. We have a very successful history, and we believe this could be the basis of a very successful future - with membership, great value and great service at its heart."

'The Co-operative Bank is a financially stable, profitable organisation with a shared heritage and products and services that complement our own.

"Its customers, colleagues, branches, mortgages and savings balances, and the additional products and services it provides, will make us stronger and enable us to continue offering the value and service that matters to members and customers alike. We're confident that we have the people, capability and the financial strength to bring both organisations together successfully over a number of years."