Coventry Building Society finalises £780m deal for Co-operative Bank

Agreement will create lender with almost 5m customers and £89bn balance sheet

The Co-operative Bank is to return to its mutual roots after Coventry Building Society confirmed that it will acquire the bank from its hedge fund owners for £780m.

The deal has now been finalised after Coventry said it had made a non-binding cash offer for the bank last month that will create a lender with almost 5 million customers and an £89bn balance sheet.