The Competition and Markets Authority (CMA) has approved the merger of Co-op Group and Southern Co-op, allowing the two organisations to begin combining their operations.
Approval follows earlier transfer
The approval, granted on 5 November, follows the Transfer of Engagements earlier this year, which saw Southern Co-op's businesses transfer to a wholly owned subsidiary of Co-op Group. The businesses can now begin the process of coming together, combining more than 300 years of co-operative heritage.
The move brings together Southern Co-op's 173 food stores, 69 funeral homes and around 330,000 members with Co-op Group's 2,300 food stores, 800 funeral homes and 7.5 million members.
Divestments agreed
As part of the remedies agreed to secure CMA approval, 15 convenience stores and two funeral homes across the combined estate will be divested. Both businesses will continue to operate as normal while migration plans are finalised, with no immediate changes to membership benefits or rewards.
Leaders welcome decision
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."
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."
The two societies will now work on finalising migration plans, with the combined business aiming to deliver more for members, customers and communities.
