Coventry Building Society has acquired The Co-operative Bank after receiving regulatory approval for the share purchase agreement announced in May.
The deal is expected to be completed by 1 January 2025, with The Co-operative Bank continuing to operate as a separate entity for some time after the acquisition is finalised.
In an announcement, Co-operative Bank stated: “We are pleased to achieve this significant milestone in bringing together both businesses which share a powerful mutual/co-operative heritage. The combined business will provide improved products, value and service for existing and new customers.”
Both Coventry Building Society and The Co-operative Bank have emphasised that there are no immediate changes following this announcement and that they look forward to continuing their collaboration throughout 2025.
At the completion of the deal, The Co-operative Bank will become a subsidiary of Coventry Building Society and return to mutual ownership. Over time, the intention is for customers to become members of the Society.
In the short term, both businesses will continue to operate under their existing names, brands and banking licences. This means there will be no immediate changes to the day-to-day contact, lending policies or systems.
Both companies have noted a commitment to maintaining business as usual as they plan for a gradual integration process that could span several years. During this period, no significant alterations to products, services or operational procedures are expected.
For brokers, The Co-operative Bank and Coventry Building Society will continue to function independently for the time being, meaning separate product offerings and systems will remain in place.
Similarly, corporate partners will work with both lenders independently for the foreseeable future. However, as the integration progresses, the two businesses will work towards a unified service that aims to better serve their customers and partners.
Earlier this year, Moneyhub announced it became the first third-party provider to connect to Co-operative Bank and its trading division Smile Bank.