The Co-op is planning a major takeover that could see hundreds of shops and funeral homes added to its growing empire - in a move that may reshape parts of the UK high street.
The Co-op Group has confirmed it is in talks to take over Southern Co-op, in a deal that would bring together millions of members and hundreds of sites.
If approved, the agreement would fold Southern Co-op’s 300,000 members into Co-op Group’s existing seven million-strong base.
What the deal would include
The takeover would hand the Co-op around 300 additional locations, including food stores, funeral homes and even coffee shops.
It would also see the group take control of Southern Co-op’s crematoria — marking a return to a growing part of the funeral services market.
Southern Co-op, which is based in Portsmouth, operates across the south of England, including London, under brands such as Co-op Food and Welcome.
What it means for shoppers
For customers, the move could mean a wider range of products, services and member benefits - although full details have yet to be revealed.
Executives say combining the two organisations would create more opportunities for communities and strengthen the co-operative model.
But the deal still faces several hurdles before it can go ahead.
Members will decide
Unlike traditional takeovers, both organisations are co-operatives - meaning they are owned by their members.
That means Southern Co-op’s members will get a vote on whether the deal proceeds.
If approved by members and regulators, the merger is expected to complete towards the end of 2026.
The move comes as Southern Co-op faces financial pressures, including rising costs and falling profits.
Bosses say joining forces with the larger Co-op Group would help secure its long-term future.
At the same time, the deal would significantly expand Co-op’s footprint, strengthening its presence across southern England.
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Ben Stimson, Southern Co-op’s chief executive, said the deal would secure the future of the business, which has recently grappled with falling profits and higher costs.
He said: “By coming together, we can secure the co-operative future of Southern Co-op as part of a stronger combined Co-op Group, whilst creating an even stronger voice nationally and internationally to advance the co-operative cause.”
Kate Allum, Co-op Group’s interim chief executive, said: “Joining forces across Co-op Group and Southern Co-op will create new opportunities for members to have access to a greater range of benefits across a wider society, with more trading opportunities, and in turn more benefits for them and their communities.”
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