The Competition and Markets Authority has given a provisional welcome to a package of remedies put forward by Co-operative Group Limited, according to the CMA. The regulator said the proposals — which include offloading 15 convenience stores and two funeral homes — could settle the competition worries it identified in its phase 1 investigation.
Key points
- Remedies offered — 15 convenience stores and two funeral homes are to be sold.
- Concerns found — Competition could be reduced in parts of southern England.
- Next stage — The CMA will seek third-party feedback and assess possible buyers.
- Possible outcome — The deal could be conditionally cleared without a phase 2 probe.
Co-operative Group Limited finished buying The Southern Co-operative Limited on 26 July 2026. The CMA's phase 1 probe found the tie-up could weaken rivalry among convenience stores in certain local areas, and could also affect attended funeral services where both businesses run funeral homes.
Both companies accepted the deal had raised those issues and asked for a fast-track process, offering undertakings to resolve them. They have since worked closely with the CMA on remedies, and the CMA said the proposed sales in each affected area could deal with its concerns. The regulator will now look at the plans in more detail, including taking feedback from third parties and weighing up potential buyers.
Joel Bamford, Executive Director for Mergers at the CMA, said in a statement:
Having reviewed these proposals, we provisionally believe they could resolve our concerns and allow us to clear the deal while protecting competition for the benefit of people in these local communities.
If the CMA accepts the undertakings, they become legally binding and the merger would be conditionally cleared without being referred for an in-depth phase 2 investigation. The CMA will consult on the proposed undertakings before making its final decision.
What it means in practice
For most people in Britain this changes nothing directly — it concerns shops and funeral homes in parts of southern England. But if the sales go ahead, local shoppers could see those stores change hands, and customers of the funeral homes may find a different operator. Until the CMA finishes consulting, nothing is settled.
- Shops may change owner — 15 convenience stores could be sold to new operators, which may affect opening hours, ranges or branding.
- Funeral services — two funeral homes could pass to a different firm, so anyone arranging a funeral there should check who runs it.
- No action needed now — the CMA is still consulting, so there is nothing for the public to do at this stage.
