The boards of Co-op Group and Southern Co-op have proposed to merge.
If approved, the proposal will result in Southern Co-op’s 300,000 members and 300 food, funeral and Starbucks coffee branches across the south of England joining forces with Co-op Group.
Co-op Group comprises over seven million members and operates over 2,300 food stores, 800 funeral homes and a wholesale business supplying around 8,000 outlets.
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The transaction would create a co-operative society with greater scale, resilience and impact for members, customers, colleagues across the UK, the businesses said.
It also aims to strengthen the co-operative movement by providing greater value to members with a wider co-operative offering.
“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,” said 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 said: “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 said: “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 subject to approval by Southern Co-op members and mandatory regulatory approvals. If approved, the transfer of engagements is expected to take place in Q3 2026, at which point Southern Co-op members would become members of an enlarged Co-op Group.
However, both businesses are expected to continue to be run independently for a period of time thereafter while they seek CMA approval.
During this period members of each society will continue to receive the separate member benefits currently offered by the two societies when trading.
The proposals comes following the launch of OurCoop, which brought together Central Co-op, Midcounties Co-op and Chelmsford Star under one organisation.
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