LONDON - Coventry Building Society ("CBS") and The Co-operative Bank Holdings PLC ("Bank Holdings") have announced that regulatory approvals have been secured for CBS's acquisition of the entire issued share capital of Bank Holdings. The Financial Conduct Authority (FCA) and the Prudential (LON:PRU) Regulation Authority (PRA) have consented to the transaction, which is scheduled for completion on January 1, 2025.
The cash acquisition will be funded by the Society's existing resources and is not expected to necessitate immediate changes to the capital structure of the Bank or the combined group. The Bank of England has indicated that it will allow the outstanding externally held eligible liabilities and Tier 2 instruments issued by the Bank to meet the consolidated MREL requirements of the combined group until May 31, 2027. Post-acquisition, CBS and the Bank plan to gradually align their capital structures.
Upon the acquisition's completion, The Co-operative Bank will operate as a subsidiary under CBS, with both entities retaining their respective banking licenses. This ensures that customers and members of each institution will continue to receive the same Financial Services Compensation Scheme protection.
The leadership team for the combined group has been previously announced, with David Thorburn as Chairman, Stephen Hughes as Chief Executive Officer, and Lee Raybould as Chief Financial Officer.
CBS, a mutual savings and mortgage provider recognized for its workplace environment and commitment to social and environmental responsibility, is the 8th largest UK lender. The Co-operative Bank, known for its Ethical Policy and customer-led approach, serves approximately 2.5 million retail customers and 94,000 SMEs.
The acquisition aims to bring together two customer-focused financial institutions, with CBS retaining its status as a building society. This announcement is based on a press release statement and contains only factual information regarding the acquisition.
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