The merger between Southern Co-op and the Co-operative Group is set to proceed after Southern’s members ratified their previous vote to join up with the UK’s largest co-operative society.
At today’s second Special General Meeting, Southern members voted to confirm the merger and thus rubber-stamped the first round of voting which took place at the first SGM on 6 May.
The first meeting saw 97.07% of Southern members back the deal. That was despite the efforts of a campaign group called Save Our Southern which had been set up to oppose the plan.
SOS had called for greater transparency over the financial position of Southern and suggested the society should be looking more at alternative options to The Co-op deal, including perceived interest from fellow independent society OurCoop.
The merger is set to create an organisation with sales of circa £11.5bn. Co-op Group operates around 2,300 stores as well as owning Co-op Wholesale, the business previously known as Nisa. Southern operates around 175 food stores.
The merger is now likely to be subject to regulatory approval, however there is a good deal of overlap between stores currently operated by both societies.
“Our members have voted to join forces with Co-op Group,” confirmed a Southern Co-op spokesman.
“Over 16,091 members voted – significantly more than the first vote – demonstrating strong engagement from our members in Southern Co-op’s future.
“This represents an important milestone, giving us a clear mandate to progress our plan to join forces for the benefit of members, colleagues and communities across the UK, while preserving the heritage and legacy of Southern Co-op and all that it stands for.
“The next step is to register the transfer with the Financial Conduct Authority (FCA). Once registered, all Southern Co-op assets, liabilities and employees will transfer to a subsidiary of Co-op Group with colleagues transferring under TUPE regulations, meaning existing terms and conditions of employment will be protected. This is currently expected to happen at the end of July 2026.
“Alongside this, the Competition and Markets Authority (CMA) will review the transaction, although this review won’t affect completion of the merger.
“While the CMA process continues, Southern Co-op will operate as a standalone subsidiary within Co-op Group. We do not expect any immediate operational changes.
“Members will still be able to use their Southern Co-op card and access the same benefits as usual and our stores and funeral homes will continue operating normally.”
Before the voting commenced earlier this month, the board of Southern Co-op had warned the society would “most likely” go into administration if members voted against the merger with Co-op Group.
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