The UK Competition and Markets Authority (CMA) has proposed accepting a package of remedies offered by Co-operative Group Limited in connection with its acquisition of The Southern Co-operative Limited.
The proposed remedies include the sale of 15 convenience stores and 2 funeral homes in areas where the CMA identified potential competition concerns. The CMA has provisionally concluded that these proposed sales could address the concerns raised during its Phase 1 investigation.
What Is the Co-op Group and Southern Co-op Deal?
Co-operative Group Limited completed its acquisition of The Southern Co-operative Limited on 26 July 2026.
The CMA subsequently investigated whether the transaction could reduce competition in certain local markets. The Phase 1 investigation identified concerns relating to both convenience-store retail and attended funeral services in several local areas in southern England.
Why Did the CMA Raise Competition Concerns?
The CMA found that the acquisition could reduce local competition around certain Co-op Group and Southern Co-op convenience stores.
It also identified potential competition concerns in areas where both businesses operated funeral homes providing attended funeral services.
What Remedies Has Co-op Group Offered?
Co-op Group has offered undertakings that include:
- 15 convenience stores proposed for sale
- 2 funeral homes proposed for sale
- Sales covering the local areas where the CMA identified competition concerns
- Potential buyers to be considered as part of the CMA’s review process
The CMA has provisionally found that the proposed sales in the relevant local areas could address its concerns.
What Happens Next?
The CMA will now examine the proposed undertakings in more detail.
Third-Party Consultation
The CMA plans to seek feedback from third parties on the proposed remedies. It will also consider potential purchasers for the businesses being offered for sale.
Conditional Clearance
If the CMA is satisfied that the undertakings adequately address its competition concerns, it may accept them and conditionally clear the merger.
The undertakings could become legally binding if accepted. In that situation, the transaction would not proceed to an in-depth Phase 2 investigation.
What Does This Mean for the Deal?
The CMA has not yet given final clearance based on the proposed remedies.
The authority is currently considering whether the proposed sales are sufficient to resolve the competition concerns identified during Phase 1. The final outcome will depend on the consultation, assessment of potential buyers and the CMA’s decision on the undertakings.
Key Dates
| Event | Date |
| CMA invitation to comment | 4 June 2026 |
| Merger inquiry launched | 30 July 2026 |
| Phase 1 decision | 15 September 2026 |
| Acquisition completed | 26 July 2026 |
| Proposed remedies announcement | 29 September 2026 |
Note
The CMA’s announcement dated 29 September 2026 describes the proposed remedies as provisional. The authority will consult on the undertakings before deciding whether to accept them. If accepted, the undertakings will become legally binding.
Conclusion
The CMA is considering a remedy package designed to address competition concerns arising from Co-op Group’s acquisition of Southern Co-op. The proposed sale of 15 convenience stores and 2 funeral homes is intended to preserve competition in the local areas identified during the Phase 1 investigation.
The next steps involve consultation, consideration of potential buyers and a final CMA decision on whether the proposed undertakings are sufficient for conditional clearance.
