The Competition and Markets Authority (CMA) cleared The Co-operative Group’s acquisition of Southern Co-op on Thursday, Nov. 5, 2026. The approval from the United Kingdom’s competition regulator followed an agreement by the Co-op to sell 15 convenience stores and two funeral homes to address market competition concerns. The regulator stated that these measures were sufficient to avoid a more detailed Phase Two investigation.
The merger was first announced in April 2026. Prior to the approval, the CMA had raised concerns that the combination could substantially lessen competition. By agreeing to offload the 17 specific sites, the Co-operative Group met the requirements set by the watchdog to move forward with the integration.
The transaction will merge Southern Co-op’s approximately 300 sites—which include 173 food stores, 69 funeral homes, and Starbucks coffeehouse locations—into the Co-op Group's network. Southern Co-op brings roughly 330,000 members to the Co-op Group’s existing 7.5 million members. Co-op Group interim chief executive Kate Allum stated the approval allows the societies to build "greater scale and resilience," while Southern Co-op chief executive Ben Stimson said the priority is to maintain shared values as the organizations join forces.
The Co-op stated that while integration begins, members will not see immediate changes to their benefits or rewards. The scale of the deal involves the consolidation of Southern Co-op’s sites into the Co-op Group’s infrastructure of 2,300 food stores and 800 funeral homes. The CMA’s intervention ensures that in 17 specific local markets, residents will still have access to a non-Co-op branded alternative for daily essentials or funeral services.
The two firms have indicated they will continue to operate as normal during the initial stages of integration. The Co-op Group has not yet announced the specific dates for when the 17 sites will be sold, but the CMA's approval allows the merger to proceed.