The UK’s Co-operative Group has received approval from the Competition and Markets Authority (CMA) to merge with the independent Southern Co-op, allowing the two cooperatives to begin bringing their businesses together.

The news follows the Transfer of Engagements process earlier this year, which saw Southern Co-op’s businesses move under Siena Co-operative Limited, a wholly-owned subsidiary of Co-op Group.

During the CMA review, the two continued to operate as separate businesses. This arrangement will remain in place while detailed migration plans are finalised, the Co-op Group said.

The approval will allow Co-op Group to add Southern’s portfolio to its own estate, including its 173 food stores, 83 Starbucks Coffeehouses and roughly 330,000 members.

The CMA has mandated that 15 convenience stores and two funeral homes across the combined estate be divested to maintain fair competition across the country.

Co-op Group and Southern Co-op have a long history of collaboration, including through the Federal Retail Trading Society buying and supply group and wider collaboration across the co-operative movement.

Kate Allum, Co-op Group’s interim chief executive, 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.

“By bringing together more than 300 years of co-operative heritage, we have the opportunity to build an even stronger Co-op, with greater scale and resilience, and the ability to deliver more for our members, customers and communities.”

The decision to merge with the larger Co-op Group was made by Southern Co-op’s members in May after an overwhelming 97.7 per cent vote in favour.

The expansion is a victory for the UK’s largest retail co-operative in a year that has seen five high ranking members of staff step down and a major restructuring of its food business following a £35 million loss in 2025.

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