The acquisition by Coventry Building Society means Co-op Bank moves a step closer to regaining its mutual status, which is where a company is owned by its customers
Coventry Building Society has agreed a potential takeover of the Co-operative Bank in a landmark deal worth up to £780million.
The acquisition means Co-op Bank moves a step closer to regaining its mutual status, which is where a company is owned by its customers. Co-op Bank currently has around 2.6 million retail customers. Coventry has around two million members.
The two lenders had been in exclusive talks for more than three months, according to an earlier Sky News report. If the deal is completed, millions of customers will be affected – but there won’t be any immediate changes announced straight away. Any savings up to £85,000 will remain protected by the Financial Services Compensation Scheme (FSCS).
It comes after Co-op Bank last month announced plans to cut around 400 jobs, the equivalent of more than one in 10 of its workforce, to cut costs. It comes after Co-op Bank saw its yearly profit nearly halve, with its pre-tax profit falling to £71.4 million for 2023, down from the £132.6 million it made in 2022.
Last month, Nationwide Building Society agreed to takeover rival lender Virgin Money in a deal worth around £2.9billion, and in February, Tesco Bank was sold to Barclays in a deal worth up to £1billion.