Coventry Building Society has confirmed a £780million takeover of Co-Op Bank as the firm promises a “larger UK branch network”.
The group agreed to buy the Co-Op Bank last month after three months of reported exclusive talks.
The Building Society said it did not require members to vote on the deal which will make the West Midlands group, Britain’s seventh-largest lender.
It also said it would return the Co-Op Bank to a mutual ownership structure.
Coventry Building Society has confirmed a £780m takeover of Co-Op Bank as the firm promises a ‘larger UK branch network’
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The Prudential Regulation Authority and Financial Conduct Authority is now required to accept the acquisition.
The purchase is expected to be completed in the first quarter of 2025.
Coventry Building Society said: “In coming to this decision, the CBS board has been informed by member surveys and focus groups, which clearly signalled their priorities as maintaining our value proposition and service quality.”
It comes shortly after the controversy which arose following Nationwide Building Society’s proposed £3billion acquisition of Virgin Money.
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Nationwide refused to offer its 17 million members a vote on whether its own takeover plan should be implemented.
David Thorburn, chairman of Coventry Building Society, said the deal would be “a transformational moment for members and customers” of both companies.
He added: “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.”
The board said the deal will bring a “broader set of products and services” and “more investment in delivering services” which “will benefit current and future members”.
The purchase is expected to complete in the first quarter of 2025
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Nick Slape, chief executive of the Co-Op Bank, said the company has “successfully transformed and simplified the bank into one that is now sustainably profitable with a strong capital and liquidity position.
“This transaction is a natural next step and presents an exciting opportunity.”
The building society said the cash consideration needed to pay for the takeover will be paid for with existing cash resources.