Co-op Group and Southern Co-op merger cleared by CMA, with 17 sites to be sold
The Co-operative Group and Southern Co-op have received approval from the Competition and Markets Authority (CMA) to merge, allowing the two societies to begin bringing their businesses together.
The decision follows the completion of the Transfer of Engagements earlier this year, which saw Southern Co-op’s businesses move to Siena Co-operative Limited, a wholly owned subsidiary of Co-op Group. The two businesses continued to operate separately while the CMA conducted its review.
Subscribe to TRBThe merger will combine Southern Co-op’s 173 food stores, with Co-op Group’s 2,300 sites. The takeover will also include 83 Starbucks Coffeehouses, 69 funeral homes, three crematoria and four burial grounds.
As part of the remedies agreed to secure approval, 15 convenience stores and two funeral homes across the combined estate will be divested.
Work will now begin on detailed migration plans, with timings varying across different parts of the organisations. Both businesses will operate as normal in the meantime.
Kate Allum, interim chief executive of the Co-operative Group, said: “Today is a significant moment for our two societies and the wider co-operative movement. CMA approval gives us the green light to begin an exciting new chapter of co-operation.”
She added: “By bringing together more than 300 years of co-operative heritage, we have the opportunity to build an even stronger Co-op, with greater scale and resilience, and the ability to deliver more for our members, customers and communities.”
Ben Stimson, chief executive of Southern Co-op, said: “We can now build on Southern Co-op’s achievements and take the strengths of our business forward into the next chapter. I’d like to thank colleagues and members for their continued support.”
He continued: “Our priority is to maintain our shared values and strengthen the co-operative movement as we join forces in earnest. We’ll keep supporting our colleagues and serving our customers and clients brilliantly through the transition.”
The two organisations have a long history of working together, including through the Federal Retail Trading Society buying and supply group and wider collaboration across the co-operative movement.
