Coventry Building Society has completed its purchase of the Co-operative Bank, returning it to mutual ownership.
The deal, approved by regulators in November, created a combined entity holding around £89bn in assets.
It means the 152-year-old bank returns to the mutual sector, following its sale to private investors in the wake of its near-collapse in 2013.
Through the merger, the combined entity promises enhanced benefits through increased customer numbers and expanded mortgage and savings balances.
The deal combines the bank’s 2.5 million retail and nearly 100,000 small and medium sized business customers with the Coventry’s two million customers.
Coventry’s chair David Thorburn, CEO Steve Hughes and CFO Lee Raybould will retain their roles in the combined entity. Nick Slape will retire as CEO of the Co-op Bank following a handover period to ensure a smooth transition.
Hughes will serve as interim CEO of the Co-op Bank alongside his group role until a permanent appointment is made.
“We’re excited about what this means for our future,’ wrote Hughes in a post on the bank’s website. “Bringing together our two values-driven organisations will result in a mutually owned business that’s deeply passionate about its members, customers and communities.
“We’ll use our combined experience of almost 300 years to do more of the things that matter to you. We’ll make improvements to our levels of service, enhance the support we offer, while continuing to keep your money safe and secure.“
Members will be updated as work to merge the two organisations continues, he added, but the two will operate separately for the time being, and will retain their existing FCA protections for customers.
“This means there will be no impact to your products or on the way you use our services right now,” said Hughes.
He warned members to be wary of fraudsters who “often take advantage during times of change to try and persuade people to share personal or financial information”, adding: “We’ll never ask you for security details, over the phone or by email, so if someone does – please don’t share this information with them.”
