Green light for Somerfield takeover

12 April 2012

The Co-op has been given the green light for its takeover of rival Somerfield after reaching an agreement with competition authorities to sell off more than 130 stores.

The move comes after the Office of Fair Trading (OFT) said it would not refer the takeover to the Competition Commission.

Stores in areas across the country are to be sold as part of the acquisition, which is now set to go ahead at the beginning of March.

Co-op said it had found buyers for a total of 90 stores, including 24 outlets that were sold to upfront buyers including Lidl, Spar and Morrisons, as part of the OFT agreement.

It said it had entered into purchase agreements with major retailers for the other stores and has so far sold 13 to Waitrose, seven to Tesco, six to Spar and six to Musgraves.

As previously announced, a further 34 stores are to be sold to Morrisons.

A spokesman for the group said: "There is considerable interest in the stores that the OFT has required us to sell."

But he added that more stores could go in the merger.

"Inevitably there would be some stores we needed to sell because the OFT required us to and others we would need to sell because they did not fit our model," he said.

Co-op and the OFT had indicated 133 areas where competition concerns could arise, including Aberystwyth in Wales, Whitby in North Yorkshire and Bath Road in Cheltenham, Gloucestershire. The OFT said there would be no time limit on the sale of the remaining stores.

Create a FREE account to continue reading

eros

Registration is a free and easy way to support our journalism.

Join our community where you can: comment on stories; sign up to newsletters; enter competitions and access content on our app.

Your email address

Must be at least 6 characters, include an upper and lower case character and a number

You must be at least 18 years old to create an account

* Required fields

Already have an account? SIGN IN

By clicking Create Account you confirm that your data has been entered correctly and you have read and agree to our Terms of use , Cookie policy and Privacy policy .

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged in