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Coventry BS to buy Co-op Bank for £780m

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  • 24/05/2024
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Coventry BS to buy Co-op Bank for £780m
Coventry Building Society has agreed to purchase The Co-operative Bank for a cash consideration of £780m.

This will create a group with a balance sheet of £89bn, as of 31 December. 

The acquisition is expected to allow Coventry Building Society to “leverage its financial scale” and “diversified funding base” to invest in its branches and customer services and broaden its footprint. 

Coventry Building Society said it would remain a mutual and was committed to being an independent, member-owned building society. 

The Co-op Bank will be integrated into the mutual “gradually over the years” and, during this period, the two will operate under their current brand names. 

Work will be done to integrate their services in the future. 

The combined group will be led by David Thorburn as chair and Steve Hughes as chief executive. 

The Co-op Bank will become a subsidiary of Coventry Building Society when the acquisition is complete and will operate with a separate independent board following completion. 

The cash needed to acquire The Co-op Bank will be funded from Coventry Building Society’s existing cash resources at completion. 

 

‘A transformational moment for members and customers’

The acquisition is subject to regulatory approval and is expected to complete early next year. 

Of the cash consideration, up to £125m will be deferred for three years after completion and subject to the performance of The Co-op Bank. 

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

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

In April, the two had reached non-binding terms for a £780m cash acquisition.

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