OFT looks at Co-op’s Scottish merger

THE Office of Fair Trading said it is looking at the Co-operative Group’s merger with the Lothian Borders and Angus Co-operative Society.

The merger was announced in August. Lothian Borders and Angus operates 66 food, pharmacy, petrol, funeral and non-food outlets and employs approximately 1,200 people.
 
In the year to January this year its turnover was £123m and its operating profit was just over £4m.  As well as trading in the Lothian Borders and Angus areas the society also operates stores in Grampian and Dumfriesshire.
  
In a brief statement the OFT said it would look at whether the deal “may be expected to result in a substantial lessening of competition” and should be referred to the Competition Commission.

The Co-operative Group is currently working with the OFT to achieve approval for its £1.5bn acquisition of Somerfield.