The Competition and Markets Authority (CMA) is considering
remedies offered by Co-operative Group Limited (Co-op Group),
which include the sale of 15 convenience stores and 2 funeral
homes, to address the competition concerns it identified during
its phase 1 investigation.
The CMA is concerned that reduced local competition could harm
convenience-store shoppers and people arranging attended funeral
services in these areas. The CMA's phase 1 investigation found
that Co-op Group's acquisition of Southern Co-op could reduce
competition in grocery retail in local areas around some Co-op
Group and Southern Co-op convenience stores. It also identified
concerns about attended funeral services in areas served by
funeral homes operated by these businesses.
During the investigation, both businesses accepted that the deal
raised the above competition concerns and asked to fast track the
investigation so they would offer undertakings to address these
concerns. Since then, the businesses have engaged constructively
with the CMA on finding effective possible remedies.
Having provisionally found that the proposed sales in each local
area put forward by the businesses could address the CMA's
concerns, the CMA will now proceed to consider them in more
detail, including seeking third-party feedback and then
considering potential buyers. If the CMA is satisfied that the
undertakings address its concerns, it will conditionally clear
the deal.
Joel Bamford, Executive Director for Mergers at the CMA, said:
We were concerned that this merger could reduce competition for
convenience store shoppers and people arranging funerals in
several local areas in southern England.
The businesses have engaged constructively to find a solution to
these concerns and offered to sell stores and funeral homes in
each of the problematic areas. Having reviewed these proposals,
we provisionally believe they could resolve our concerns and
allow us to clear the deal while protecting competition for the
benefit of people in these local communities.
More information can be found on the Co-operative Group /
Southern Co-operative case page.
Notes to editors:
- Co-operative Group Limited completed its acquisition of The
Southern Co-operative Limited on 26 July 2026.
- The CMA considers that there are reasonable grounds for
believing that the undertakings offered by Co-op Group, or a
modified version of them, may be accepted by the CMA. The CMA
will consult on the proposed undertakings before deciding whether
to accept them. If accepted, the undertakings will become legally
binding and the CMA will conditionally clear the merger without
referring it to an in-depth phase 2 investigation.
