The boards of Co-op Group and Southern Co-op have proposed to merge.
If authorised, the proposal will end in Southern Co-op’s 300,000 members and 300 meals, funeral and Starbucks coffee branches throughout the south of England becoming a member of forces with Co-op Group.
Co-op Group includes over seven million members and operates over 2,300 meals shops, 800 funeral houses and a wholesale enterprise supplying round 8,000 retailers.
Read more: Is the co-operative society movement still working in retail?
The transaction would create a co-operative society with better scale, resilience and impression for members, prospects, colleagues throughout the UK, the companies stated.
It additionally goals to strengthen the co-operative motion by offering better worth to members with a wider co-operative providing.
“The co-operative model is more important than ever for the health and success of communities across the UK, and a combined co-operative, bringing together over 300 years of co-operative experience, will provide new and strengthened opportunities for members, customers, colleagues and suppliers of both of our co-operatives,” stated Co-op Group chair Debbie White.
Co-op Group interim CEO Kate Allum added: “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.”
Southern Co-op CEO Ben Stimson stated: “The Co-operative Group shares our values and our commitment to democratic membership, ethical sourcing and fair reward, as well as our dedication to supporting local communities. 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.”
Southern Co-op board chair Janet Paraskeva stated: “This proposal has been carefully considered, and we believe it represents the best path forward for Southern Co-op. We are now asking our members to consider the proposal and have their say. This is their decision, and we are committed to providing all the information they need to make an informed choice about the future of their co-operative.”
The proposal is topic to approval by Southern Co-op members and obligatory regulatory approvals. If authorised, the switch of engagements is anticipated to happen in Q3 2026, at which level Southern Co-op members would grow to be members of an enlarged Co-op Group.
However, each companies are anticipated to proceed to be run independently for a time frame thereafter whereas they search CMA approval.
During this era members of every society will proceed to obtain the separate member advantages at the moment supplied by the 2 societies when buying and selling.
The proposals comes following the launch of OurCoop, which introduced collectively Central , Midcounties Co-op and Chelmsford Star underneath one organisation.
