Another 'Super Bank' Merger

Two large banking groups have agreed on a merger that will see the formation of a 'super mutual'.

Co-operative Financial Services will be combined with Britannia Building Society in a deal that will affect more than 12,000 employees, in over 300 branches and 20 corporate banking centres.

It is reported the combined group will have £70bn ($98.3 billion) of assets.

The deal would "create a super-mutual as a unique, ethical alternative to shareholder - and government-owned banks," Britannia said in a statement.

Britannia members will vote on the agreement in late April. After the merger, which is estimated to take three years, the combined group will be a wholly owned subsidiary of the Co-operative Group.

"Customers will be owners and will have available all the services they would expect from a major financial provider, together with a real say in setting strategy combined with a share of the profits," said Britannia Chairman Rodney Baker-Bates.

Co-operative's Chief Executive David Anderson said: "Owing to the damage done by the credit crunch, people have been crying out for a new way of doing business with a financial organisation of substance that truly has their interests at heart.

"This merger will create that organisation and we'd hope to attract many thousands of new customers as a result."

(PR/JM)