MOVES to create a “super-mutual” from the merger of the Co-op’s financial services arm and the Britannia Building Society were revealed last night.

A tie-up would form a business with more than 6m customers and £70bn of assets, although both sides stressed that talks were at an early stage.

Legislative changes due by the end of this year will make it easier for different types of mutuals – building societies, co-operatives and friendly societies – to join forces.

Both organisations are in sound financial health and believe a tie-up could offer customers a customer-owned alternative to the plc market.

Staffordshire-based Britannia has a 245-strong branch network and 2.6m savers. CFS – part of the Co-Operative Group, the world’s largest consumer Co-op – has a personal and business banking franchise as well as a life and general insurance operation.

Britannia 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.”