Coventry Building Society has officially confirmed the acquisition of The Co-operative Bank in a deal worth £780 million. The completion of this acquisition is expected to take place early next year, following discussions that began in December.
As part of the deal, Coventry will pay £780 million for the bank, with an additional £125 million deferred for up to three years based on the performance of Co-op Bank during that period. In a joint statement issued by both parties, it was stated that the Co-operative Bank board had considered the need for a member vote on the deal, but ultimately determined it was not necessary after conducting focus groups and member surveys.
Chairman of Coventry Building Society, David Thorburn, expressed his belief that this acquisition signifies a transformative moment for both the society and The Co-operative Bank. He highlighted the shared heritage of the two institutions and the potential for creating a stronger mutual business that prioritizes the best interests of current and future members.
Steve Hughes, the chief executive officer of Coventry Building Society, echoed Thorburn’s sentiment by emphasizing the opportunities that lie ahead through the merger. Hughes stated that the merger will enable the combined entity to deliver more value to a greater number of people in the years to come, while maintaining a focus on providing exceptional service to members.
This acquisition marks a significant development in the financial sector, with Coventry Building Society and The Co-operative Bank positioning themselves as key players in the mutual business landscape.
