Coventry Building Society said UK regulators the FCA and the PRA have given their consent to its £780 million cash acquisition of Manchester-based Co-operative Bank.

“The acquisition is expected to complete on 1 January 2025,” said Coventry.

“The cash consideration necessary to satisfy the acquisition in full will be funded from the Society’s existing cash resources.

“The acquisition will not require any immediate changes to the capital structure of the bank or the combined group as a whole.

“The Bank of England has confirmed that it intends to exercise its discretion to treat the outstanding externally held eligible liabilities and Tier 2 instruments issued by the bank as eligible to meet the consolidated MREL requirements applicable to the combined group until 31 May 2027. 

“Post completion, the Society and the bank intend to simplify and align their capital structures over time.

“At completion, the bank will become a subsidiary of the Society and each entity will retain their respective banking licences, and so customers and members of each organisation will continue to have the same Financial Services Compensation Scheme protection.

“As announced on 24 May 2024, the combined group will be led by David Thorburn as Chairman,  Stephen Hughes as Chief Executive Officer and Lee Raybould as Chief Financial Officer.”