Co-op could face investigation into Southern Co-op deal over competition fears
(Alliance News) - The Co-operative Group's planned takeover of rival Southern Co-op could face a full-scale investigation after the UK's competition watchdog warned over the tie-up.
The Competition & Markets Authority said the deal between the mutuals, which was announced in April, could "substantially" lessen competition in the sector.
It said the firms now have until September 22 to put forward measures to resolve any potential competition issues.
If it does not accept the proposals, it will refer the planned acquisition for a so-called phase two investigation.
The CMA said it "has decided, on the evidence currently available to it, that it is or may be the case that this merger has resulted or may be expected to result in a substantial lessening of competition within a market or markets in the UK.
"This merger will be referred for an in-depth, phase two investigation unless the parties offer an acceptable undertaking to address these competition concerns."
The Co-op's move would add Southern Co-op's 330,000 members to its existing seven million, as well as about 300 food, funeral and Starbucks coffeehouse sites.
The firms, which have not disclosed the value of the deal, are continuing to be run separately while the CMA investigations continue, but had been hoping to complete the merger towards the year-end after approval by members in May.
By Holly Williams, Press Association Business Editor
source: PA
Copyright 2026 Alliance News Ltd. All Rights Reserved.
The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar.
Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees.
Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.
More In Markets
Investor Focus: Mortgage Rates Hit 6%, Best UK Dividend Stocks, and £15,000 Income Tax Allowance
European Stocks: Brace for a Turbulent Earnings Season
