OFT backs Co-op’s Scots deal

REGULATORS have approved The Co-operative Group’s purchase of Scottish convenience retailer, David Sands.

The deal, now cleared by the Office of Fair Trading, adds 28 food outlets, located in Fife, Kinross and Perthshire, to the Co-op’s food business.

The acquisition, which is expected to legally complete by the end of this monthl, will cement The Co-operative Food’s position as Scotland’s fourth largest supermarket chain. Almost 700 David Sands’ staff will join the Co-op.

Co-op chief executive Peter Marks said: ““There is a strong strategic fit between the two businesses and the Sands stores will not only complement our existing estate but will also be a valuable addition to our portfolio.

“This major acquisition will significantly strengthen our food business in Scotland, especially in Fife, Kinross and Perthshire, and also reinforces our position as the fourth biggest food retailer in Scotland.”

Co-operative Food currently has 370 food stores in Scotland, serviced from a new distribution centre which opened in Newhouse, near Glasgow, in 2011.