Co-operative Bank takeover cleared by regulators

The takeover of the Co-operative Bank by Coventry Building Society will go through from 1 January after the £780m deal was given the green light by regulators.

The deal, first announced in May, will create a banking giant with millions of customers and about £89bn in assets.

The bank will officially become a subsidiary of Coventry Building Society now the move has been approved by the Financial Conduct Authority and the Prudential Regulation Authority.

Both brands will stay on the high street while the process of fully joining up the two business takes place, which is expected to take several years.

The Co-op Bank will return to a mutual structure, meaning it is owned by individual members rather than shareholders and investors like most UK banks.

It is currently owned by a group of private equity investors after being taken on by American hedge funds when financial struggles hit more than a decade ago.

Co-op Bank has about 2.5m retail and business customers, and 50 branches across the country.

Coventry Building Society said it would benefit from having more customers, mortgage and savings balances, a wider set of finance products including current accounts, and nationwide branches.

It manages about £50bn in mortgages and £48m in savings.

Ultimately, the aim is for Co-op Bank customers to become Coventry Building Society members.

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This news was gathered by the Local Democracy Reporting Service which covers councils and other public service organisations.