Coventry BS and The Co-operative Bank PLC have agreed terms of a merger but the society's members won't get to vote on the deal.
Coventry will buy Co-op Bank for £780 million under the agreement, creating an entity with an £89 billion balance sheet, the pair said in a statement on Friday.
Set to complete in early 2025, they added members would not get a vote over the agreement.
“Having had regard to the requirements of the Building Societies Act 1986, and, following thorough and detailed assessments and professional advice, the board has conclusively determined that a member vote is not required,” the statement read.
The move marks the latest between lenders looking to rack up market share, with Nationwide Building Society having agreed a takeover of Virgin Money UK PLC (LSE:VMUK) recently.
“This transaction sees The Co-Operative Bank returning to mutuality,” chairman Bob Dench commented.
“I am sure the Coventry Building Society will prove to be a very good home for us.”
Some £125 million of Coventry’s payment will be deferred for three years under the deal, to be released based on Co-op Bank’s performance.
Co-op Bank chief executive Nick Slape added the takeover was “a natural next step” for the lender and presented “an exciting opportunity”.