CO-OPERATIVE Group Ltd, the United Kingdom's largest customer-owned retailer, said yesterday that its financial-services unit was holding talks with Britannia Building Society and other firms with the aim of increasing market share and service distribution.
A merger with Britannia was "one possibility," although legislation was not in place to allow a combination of the two companies, Duncan Bowker, a spokesman for the Co-operative Financial Services unit, told Bloomberg News.
Co-operative is seeking to promote its services and increase retail deposits that have grown by 14 percent, or 500 million pounds (US$849 million), in the six months through September 30, Bowker said in a telephone interview. Legislation to allow a merger between a co-operative and a building society was being prepared and may become a law next year, Bowker said.
"If it's passed, it opens a gateway for us to consider that as an option," he said. Manchester-based Co-operative may also sell its products in Britannia's branches.
The Sunday Telegraph said yesterday that Britannia and Co-operative would have 75 billion pounds in assets. The Co-operative Financial Services has 6.5 millioncustomers, according to its Website.
Bowker declined to name any other companies Co-operative is in talks with.
Britannia's spokesman Graham Leftwich didn't respond to a message left on his mobile phone yesterday seeking comment.
Besides its financial-services arm, Co-operative Group operates food stores and pharmacies and provides travel and funeral services.