The Competition and Markets Authority (CMA) has approved the £1.6 billion mergers between Charter Court Financial Services and OneSavings Bank (OSB).

In March, Charter Court Financial Services and OneSavings Bank (OSB) said that they are in advanced discussions regarding a possible all-share combination of the two companies. The deal, which would be structured as a takeover by OSB, would see Charter Court shareholders take a 45% stake in the combined group.

The Competition and Markets Authority said it has decided, on the information currently available to it, not to refer the merger to a phase two investigation under the Enterprise Act 2002. However, completion of the deal remains subject to other outstanding conditions, including receipt of regulatory approvals from the FCA and PRA.

OSB went public in 2014, while Charter Court was listed on the London Stock Exchange in 2017.

Last November, Charter Court launched its fourth office building in Wolverhampton, accommodating 250 staff. The company was founded with 28 employees in one building on the Broadlands site in 2008, and now occupies four offices at the business park and has grown its headcount to nearly 650.

CCFS said its growth is driven by its planned diversification from its core activity of credit risk analysis into providing mortgages and savings accounts through its Exact Mortgage Experts, Precise Mortgages and Charter Savings Bank brands.