Britannia To Merge With Co-op Group

• News
• Published: 21 Jan 2009 in Money and General

Further consolidation in the personal-finance sector is to see the merger of Co-operative Financial Services and Britannia building society, two of the UK's biggest customer-owned banks.

It will result in a "super-mutual" with £70 billion of assets and nine million customers, billed as a "unique, ethical alternative to shareholder and Government-owned banks".

Co-operative Financial Services is part of the Co-operative Group, the world's largest consumer Co-op with personal and business banking plus life and general insurance.

Britannia will become a wholly-owned subsidiary of the group. Its customers, who still have to approve the deal, will become Co-op members.

Both businesses had been active in the mortgage and lending markets over the last 12 months, and have pledged that the merged firm will be looking to expand lending.

Before integrating as a single entity, the new business will continue to trade under the individual brands, plus the Co-op's Smile internet bank.

Britannia chairman Rodney Baker-Bates said: "Customers will be owners and have available all the services they would expect from a major financial provider, together with a real say in setting strategy - and a share of the profits."