The Competition and Markets Authority (CMA) has completed the deal following the sale of the store and two funeral homes.
The Co-operative Group’s acquisition of rival Southern Co-op has won approval from the competition watchdog after agreeing to sell 15 shops and two funeral homes to overcome regulatory concerns.
The Competition and Markets Authority (CMA) has confirmed that it has accepted the remedies proposed by the Co-op to address concerns flagged by the regulator and will not extend the deal to a comprehensive Phase Two investigation.
The decision clears the way for the merger of the two organizations, bringing 330,000 Southern Co-op members to the Co-op’s base of seven million, along with 300 food stores, funeral services and Starbucks coffee shop locations.
Kate Allum, interim chief executive of The Co-operative Group, said: “Today is an important moment for both our community and the wider co-operative movement.
“The CMA agreement gives us the green light to start an exciting new chapter of cooperation.
“By combining more than 300 years of co-operative heritage, we have the opportunity to build a stronger Co-op, with greater scale and resilience, and the ability to deliver more for our members, customers and communities.”
Ben Stimson, chief executive of Southern Co-op, said: “Our priority is to keep our values together and strengthen the co-operative movement as we join forces in earnest.”
Southern Co-op operates 173 food stores, 69 funeral services and has approximately 330,000 members, while the Co-op Group runs 2,300 food stores, 800 funeral homes and has 7.5 million members.
The merger between the two communities was first revealed in April. The CMA initially expressed concerns that the merger could “substantially” reduce competition in the industry.
In order to gain CMA approval, the Co-op has agreed to divest 15 stores and two funeral homes from the combined operation.
The Co-op said the company would continue to operate as normal amid the integration, with no immediate changes to member benefits or rewards.