Co-op Bank in exclusive merger talks with Coventry BS

The Co-operative Bank has announced that it is in exclusive talks with Coventry Building Society over a possible merger of the two lenders.

The Co-op Bank said the “period of exclusivity will enable the society and the bank to better evaluate the merits of a combination”.

Coventry is reported to have submitted a bid for Co-op that valued it at around £700 million, meaning a deal would result in a combined group with £90 billion in assets.

The firms noted that there was no certainty a transaction would take place and said a further update will be provided in due course.

In September, Aldermore was reportedly in talks with The Co-op Bank regarding a potential takeover.

Reports first emerged in April that that the Bank was exploring a potential sale, alongside considering mergers, acquisitions, and an initial public offering (IPO).

Shawbrook, Nationwide, OneSavings Bank and Paragon Bank have all previously been named as prospective bidders for the Co-operative Bank, which has 2.7 million retail customers.