Coventry Building Society takes over Co-operative Bank

The transaction, initially announced in May, is set to be finalised on 1 January 2025. The deal will result in a financial institution with approximately GBP 89 billion in assets and millions of customers. Following the approval from the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), the Co-operative Bank will become a subsidiary of Coventry Building Society.

Transition to mutual ownership and operational integration

Under the agreement, both brands will continue to operate on the high street while integration efforts progress. The process of fully merging the operations is expected to take several years. A key outcome of the acquisition is the Co-operative Bank's return to a mutual structure, where it will be owned by individual members rather than private equity investors or shareholders. 

The Co-operative Bank is currently owned by private equity groups, including US-based hedge funds that took control during a financial crisis more than a decade ago. It serves approximately 2.5 million customers across 50 branches nationwide according to the BBC. 

For Coventry Building Society, the acquisition brings expanded customer access, additional mortgage and savings portfolios, a broader product range including current accounts, and a network of branches across the UK. The BBC further reports that the society currently manages around GBP 50 billion in mortgages and holds GBP 48 million in savings. 

Officials from Co-operative Bank highlighted the move as a significant milestone in bringing together two businesses which share a co-operative heritage. They also expressed their belief that the combined business will provide improved products, value and service for existing and new customers. 

Once integration is complete, customers of the Co-operative Bank are expected to transition to membership within the Coventry Building Society framework.