Co-op completes £1.5bn Somerfield deal

THE Co-operative Group, has completed its £1.5bn acquisition of Somerfield.

The deal creates a stronger fifth player in the grocery sector with 8% market share and 3,000 stores generating annual sales of more than £7bn.

To satisfy competition authorities the Manchester-based Co-op had to sell off more than 130 stores, a process that has been ongoing since the takeover was revealed last summer.

Peter Marks, chief executive of The Co-op said the challenge now was to begin integrating Bristol-based Somerfield.

He said: “Our first priority now is to start integrating the two businesses – something that will bring real scale benefits, enabling us to provide better value to our customers.

“There is a strong strategic fit between these businesses and we are looking forward to creating a single business combining the inherent strengths of both Somerfield and the Co-operative Group.”

The integration, which will take around two years, will mean the closure of the Somerfield HQ in around 18 months.

The enlarged food business will be headed by the Co-op’s managing director for food, Tim Hurrell.