Moves to create a "super-mutual" from the merger of the Co-op's financial services arm and the Britannia building society were revealed yesterday.
A tie-up would form a business with more than six million customers and £70bn of assets, although both sides stressed that talks were at an early stage and part of wider discussions about how they could work together.
Legislative changes due to co
me into force by the end of this year will make it easier for different types of mutuals – building societies, co-operatives and friendly societies – to join forces.
Both organisations are in sound financial health and believe a tie-up could offer customers a customer-owned alternative to the plc market.
Staffordshire-based Britannia has a 245-strong branch network and 2.6m savers. CFS – part of the Co-Operative Group – has a personal and business banking franchise as well as a life and general insurance operation.
Britannia chief executive Neville Richardson said: "As two like-minded, forward-thinking and financially strong mutuals, we're talking with CFS about how we can work together to create an exciting proposition for our members.
"Both businesses have been pursuing successful strategies and don't need to merge, but we recognise we could be even more successful by coming together and creating the UK's most trusted financial services business."
It is not clear whether Britannia's three million members would receive a windfall payment as part of any merger with the Co-op.
The full article contains 251 words and appears in n/a newspaper.
