Yahoo Finance Co-op Bank enters exclusive talks with Coventry Building Society
The Co-op Bank has entered exclusive talks with Coventry Building Society which could pave the way for a merger in the new year.
The mid-sized lender said that after receiving “non-binding proposals from potential acquirers,” it had started talks with Coventry Building Society to “better evaluate the merits of a combination.”
According to reports, Coventry Building Society submitted a bid for Co-op earlier this month which valued the bank at £700m.
Today’s announcement follows the confirmation that the bank was undertaking a “strategic review” process in early November after months of speculation about the bank’s future.
After being rescued by US hedge funds back in 2017, the Co-op Bank has been through a long process of recovery, returning to profit in 2021.
It has long been seen as a takeover target for banks looking to challenge the dominance of the UK’s established lenders.
Several banks, including Aldermore and Shawbrook, were reportedly interested in picking up the Co-op Bank.
The bank notched pre-tax profits of £81.1m in the nine months to the end of September and recently acquired Sainsbury’s Bank’s mortgage book.
“There is no certainty that these exclusive discussions will result in a transaction. A further update will be provided in due course,” the bank said.
