Manchester-based Co-operative Bank set for £780m takeover

A potential takeover of the Co-operative Bank worth up to £780 million has been agreed. Coventry Building Society has agreed the buy-out of its rival high street lender.

It follows discussions over a possible merger between the two parties, which have taken place for several months. The Co-op Bank is based on Balloon Street in Manchester city centre.

Steve Hughes, chief executive of Coventry Building Society, described the possible buy-out as an 'exciting moment'. He added: "The Co-operative Bank is a financially stable, profitable organisation with a shared heritage and products and services that complement our own.

READ MORE: Football manager sacked after three days is convicted rapist who attacked woman in Manchester flat

"We're confident that we have the people, capability and the financial strength to bring both organisations together successfully over a number of years." A deal would create a combined group with a balance sheet of £89 billion, making it a bigger player in the mortgages and savings market.

Coventry says it will look to integrate Co-op Bank gradually over several years, with the bank's customers eventually becoming members of the building society. The lenders said they were working together to firm up the arrangements of the deal and stressed there can be no certainty that an acquisition will happen.