Britannia confirms talks with Co-operative
In light of forthcoming legislative changes
that will make it easier for different types of mutuals – building
societies, co-operatives and friendly societies – to work together,
Platform’s parent company Britannia Building Society has confirmed
it is in exploratory talks with Co-operative Financial Services
(CFS).
Britannia said the talks were at a very early stage and would
cover a wide range of options as to how the two organisations could
work together, including a possible future merger.
This would be enabled through the introduction of measures
contained in the Building Societies (Funding) & Mutual
Societies (Transfers) Act – known as the Butterfill bill, after its
sponsor Sir John Butterfill MP. The legislation should be in place
by the end of this year. A merger would also have to be approved in
a vote by Britannia's members.
The organisations – two of the UK’s leading member-owned
businesses – have similar values and share a mutual ethos, so there
would be a strong cultural fit and it would represent a merger of
strong equals.
Britannia – the country's second biggest building society – has
an extensive branch network and a strong savings and mortgage
franchise. CFS – part of the Co-operative Group, the world’s
largest consumer co-op – has a strong personal and business banking
franchise and life and general insurance expertise.
The combined and complementary strengths of the two businesses
could offer customers a real ethical, customer-owned alternative to
the plc market, with the combined organisations having around £70
billion of assets and six million customers.
Britannia Group 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.
"Talks are at an early stage and no decisions have been taken,
so it’s too soon to talk about what changes might arise for our
customers and employees. We can say that we remain committed to our
Leek, Staffordshire base, our extensive branch network and our
strong Britannia brand."
Back to
Press releases >