By Basant El-Faramawy
The Competition and Markets Authority has cleared The Co-operative Group’s takeover of Southern Co-op after the retailer agreed to sell 15 convenience stores and two funeral homes to address competition concerns.
Remedies agreed
The CMA accepted the proposed remedies and will not refer the deal for a full Phase Two investigation. The divestments span the combined group and pave the way for the merger to complete.
Scale of combined group
The merger adds Southern Co-op’s 330,000 members to the Co-op’s existing 7.5 million, along with about 300 food, funeral and Starbucks coffeehouse sites. Southern Co-op operates 173 food stores and 69 funeral homes, while the Co-op Group runs 2,300 food stores and 800 funeral homes.
Executives comment
Kate Allum, interim chief executive of The Co-operative Group, called the approval a significant moment for the co-operative movement. Ben Stimson, chief executive of Southern Co-op, said the priority is to maintain shared values and strengthen the movement.
The companies will continue to operate normally during integration, with no immediate changes to membership benefits or rewards.
