Coventry Building Society has won approval for its £780m takeover of the Co-operative Bank from regulators, the Financial Conduct Authority and Prudential Regulation Authority.

The deal, which reached financial completion on 24 May, is expected conclude on 1 January 2025.

The cash to fund the acquisition will be funded from the society’s existing reserves, the mutual says.  

The society and the bank “intend to simplify and align their capital structures over time”. 

The combined group will be led by the mutual’s chairman David Thorburn and chief executive Steve Hughes, as well as Lee Raybould as chief financial officer.

The building society said earlier in the year the combination will “deepen the enlarged group’s existing presence in mortgages and savings and extend the society’s propositions”.  

It added that the move will give the larger group a balance sheet worth £89bn, provide it with “an established position” in personal current accounts, as well as boosting its branch network and other distribution channels.     

The building society said it will integrate the bank “gradually over several years”.