Coventry Building Society's £780 million deal to buy the Co-op Bank has been agreed.
Following the news last month a buyout was in the pipeline, the West Midlands building society has today confirmed that a deal will now go through for the Manchester-based bank.
The acquisition would return Co-op Bank to a mutual ownership structure as it had when it was part of the wider Co-op Group, meaning it is owned by members rather than shareholders.
It parted ways with the group in 2017 when it fell into deep financial difficulty and was rescued by American hedge funds and is now owned by a group of private equity investors.
Co-op Bank has 50 branches across the 海角视频 with about 3,400 staff but in March said it was planning to cut about 400 jobs as part of efforts to cut costs.
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In a joint statement, issued to London Stock Exchange this morning, they said: "A combination between the society and the bank is expected to both deepen the enlarged group's existing presence in mortgages and savings and extend the society's propositions.
"The Coventry Building Society board believes the acquisition is in the best interests of current and future members.
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"It will create a combined group with a balance sheet of £89 billion (and) allow the society to leverage its financial scale and a diversified funding base.
"Appropriate priority will be given to colleague communication and engagement while combining the two organisations. There will inevitably be change over time but this will be underpinned by the strong organisational values in place."
It added that the buyout would provide Coventry Building Society with a foothold in the personal current account market, broadening its portfolio of products.
Co-op Bank will be integrated into the building society gradually over several years with the two brands continuing to operate under their current names while this work is ongoing.
The newly combined group will be led by current Coventry Building Society chairman David Thorburn and chief executive Steve Hughes.
Co-op Bank will become a subsidiary of the building society and operate with a separate independent board post completion.
Mr Thorburn said: "I believe this is a transformational moment for members and customers of the society and Co-op Bank.
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"We're building on our shared heritage and creating a stronger mutual business that will deliver in the best interests of our current and future members."
Co-op Bank chairman Bob Dench added: "This transaction sees Co-op Bank returning to mutuality. I am very proud of all those who have worked so hard over so many years to rebuild the bank. I am sure the Coventry Building Society will prove to be a very good home for us."