The Co-operative Bank is currently exploring a potential merger with Coventry Building Society, following a strategic review that began in November, according to reports.
The bank, which has attracted interest from several buyers confirmed its entry into ‘exclusive discussions’ with Coventry Building Society to assess the benefits of such a combination.
This move follows speculation about the bank’s future, with rumours of a possible takeover by specialist lenders including Shawbrook, Aldermore, and Paragon Banking Group.
The strategic review last month had put the Co-operative Bank in the spotlight as a potential acquisition target.
The Daily Mail quotes the group as saying: “The bank confirms that, following receipt of non-binding offers from potential acquirers, it has entered into a round of exclusive discussions with Coventry Building Society.
“This period of exclusivity will enable the Society and the Bank to better evaluate the merits of the combination.
“There is no certainty that these special discussions will result in a transaction. Further updates will be provided in due course.”
