CMA proposes to accept remedies package in Co-op Group deal to address competition concerns
Undertakings offered by Co-op Group could address competition concerns relating to its acquisition of Southern Co-op.
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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.
For media enquiries, contact the CMA press office.
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