Coventry BS announces plans to acquire The Co-operative Bank

The boards of Coventry Building Society and The Co-operative Bank have agreed a potential acquisition of the Bank by the Society in a deal worth £780m.

In a statement, Coventry said discussions regarding the potential transaction are "well advanced", but noted that there is no certainty at this stage that the acquisition will occur.

Coventry said the combined group would widen its presence in the mortgage and savings market, giving it a combined balance sheet of £89bn, and extend the Society's propositions.

The Co-operative Bank first announced that it was in exclusive talks with Coventry Building Society over a possible merger of the two lenders in December 2023.

Reports first emerged in April 2023 that that the Bank was exploring a potential sale, alongside considering mergers, acquisitions, and an initial public offering (IPO).

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

Steve Hughes, CEO of Coventry Building Society, 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."