Coventry Building Society enlists Wall Street giant as takeover deal nears

The Coventry Building Society has reportedly drafted in JP Morgan, as it looks to bolster its proposed takeover of the Co-op Bank.

According to Sky News, the Wall Street titan is working alongside KPMG on the deal, after an exclusivity period was confirmed on December 21.

Both parties have until the end of March to negotiate the terms of the deal, and if it goes ahead, a firm with almost five million clients, more than 110 branches and a combined mortgage portfolio of nearly £70m.

On Tuesday, a £500m bond was issued by the Coventry to support its capital base for regulatory purposes, with Sky sources claiming £1.8bn of demand was received.

The lender posted its annual results on Thursday and reported a profit before tax of £474m for 2023, up from £371m the previous year.

In the results, Coventry Building Society chief executive Steve Hughes said: “With regards our interest in acquiring The Co-operative Bank, there is little I can add, other than to say thorough and detailed due diligence is being undertaken and we will only pursue this if we believe it is in the best interest of current and future members.”

Coventry Building Society has been contacted for comment, with no immediate response received.

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