On May 24, 2024, it was announced that Coventry Building Society (the “Society”) would acquire the Co-operative Bank (the “Bank”) for a cash consideration of £780m.
The combination with Co-operative Bank will create a building society of significant scale and presence in retail mortgages and deposits in the UK. The combined group will have a pro forma balance sheet of c.£89bn assets, including £71bn of loans and £67bn of deposits, and a national branch network of 114 branches, making it the second largest building society in the UK, with a 4.5% market share in mortgage and savings products.
The acquisition of Co-operative Bank provides the Society with both a retail current account proposition of scale, allowing it meet member needs for a current account capability, and the capability to expand into the attractive business savings and current account market.
The transaction is subject to customary regulatory approvals with completion expected in Q1 2025.
Fenchurch is acting as financial adviser to the Co-operative Bank.
