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

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