FSA approves Co-op merger
THE Financial Services Authority (FSA) has officially approved the merger of the Co-operative Bank and Britannia Building Society.
In a statement the two institutions said they welcomed the decision that will lead to the creation of a £70bn so-called super-mutual on August 1.
They said the merger will create a, “large, financially strong and well-diversified mutual business operating in both retail and corporate markets”.
In its decision document the FSA said 88% of Britannia shareholders – more than 375,000 people – had voted in favour. But it received 20 written representations expressing concern about the deal.
One said the information provided to Britannia shareholders was “deficient” because it did not provided alternatives for the society.
Another representer questioned the lack of detail about the Co-operative Group’s support for the Labour Party. Co-operative Financial Services told the FSA that neither the Co-operative Bank or CFS made any contributions to the party.
The Co-op said donations to the Co-operative Party and the Labour Party were made by the Co-operative Group and these donations represent just over 0.3% of the Co-operative Group’s profit before payments to and on behalf of members.
