UK watchdog proposes accepting Co-op remedies in Southern Co-op deal

By Reuters News

Sept 29 (Reuters) - Britain's competition watchdog on Tuesday said it is proposing to accept remedies offered by retailer Co-operative Group to address the competition concerns raised over its takeover of regional operator Southern Co-operative.

  • The Competition and Markets Authority's (CMA) said the remedies offered by Co-op, including the sale of 15 convenience stores and 2 funeral homes, could remedy the risk of reduced local competition

  • Co-op, one of Britain's largest food retailers, operates more than 2,500 stores; Southern Co-op runs convenience stores, funeral homes and Starbucks outlets across southern England

  • CMA's phase 1 investigation had found the deal could harm convenience-store shoppers and people arranging attended funeral services in local areas in southern England

  • The regulator said both businesses have acknowledged the competition concerns and asked to fast-track the investigation so they could offer remedies

  • After third-party feedback and consideration of potential buyers for the stores and funeral homes, CMA said it will conditionally clear the merger if satisfied with the undertakings

  • Co-op and Southern Co-op did not respond to Reuters' request for comment


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