Coventry reportedly finalising £780m Co-op Bank takeover
Coventry Building Society is in the final stages of negotiating a £780m takeover of the Co-operative Bank, it emerged on Wednesday, aiming to complete the deal within days to avoid complications under the UK Takeover Code.
According to Sky News, both financial institutions were keen to finalise the transaction promptly to circumvent the additional financial and regulatory complexities associated with the Takeover Code.
Remaining issues, including certain balance sheet provisions, were expected to be resolved shortly.
Negotiations had been ongoing for months, with the parties signing non-binding heads of terms in April.
If successful, the acquisition would effectively remutualise the Co-operative Bank over a decade after it nearly collapsed and was bailed out by American hedge funds.
The merger would create a significant player in the British banking sector, with the combined entity serving millions of customers and managing close to £90bn in assets.
Sky said Coventry Building Society, the UK’s third-largest building society, would not seek a member vote on the acquisition, mirroring Nationwide’s approach with its proposed acquisition of Virgin Money.
It added that the new entity would be comparable in size to Virgin Money, with around five million customers nationwide, and would significantly enhance Coventry’s presence in the personal current account and business banking markets.
The deal was reportedly being advised by PJT Partners and Fenchurch Advisory Partners for the Co-operative Bank, while JPMorgan and KPMG were advising Coventry Building Society.
Reporting by Josh White for Sharecast.com.