The £780 million takeover of Co-operative Bank by the Coventry Building Society has been given regulatory approval, with the acquisition expected to complete on 1 January 2025.

The Co-operative Bank announced that its owners have signed a share purchase agreement with Coventry Building Society, through which the building society will acquire the entire share capital of the bank.

Following the buyout, the bank will continue to operate as a separate business, with the Co-operative Bank saying the work needed to provide a joined-up service could take years.

The Co-operative Bank warned its customers to be alert for fraud, as it said criminals take advantage during times of change to persuade people to share personal or financial information.

“We are pleased to achieve this significant milestone in bringing together both businesses which share a powerful mutual / co-operative heritage,” said Nick Slape, chief executive at The Co-operative Bank. “The combined business will provide improved products, value and service for existing and new customers.”

In May, the Co-operative Bank said its transformation programme was “materially complete” ahead of the merger. The bank's multi-year overhaul included a £100 million IT cash injection.

In March, the bank announced plans to cut around 400 jobs, 12 per cent of its workforce, ahead of the takeover as part of plans to simplify its business and cut costs.

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