The Competition and Markets Authority (CMA) is currently assessing a remedies package proposed by Co-operative Group Limited (Co-op Group) to address competition concerns identified during its phase 1 investigation of the merger with Southern Co-op.

The CMA's investigation raised alarms about potential reductions in local competition that could negatively impact convenience-store shoppers and individuals arranging attended funeral services in the affected areas. Specifically, the CMA found that the merger could lessen competition in grocery retail and funeral services in regions where both Co-op Group and Southern Co-op operate.

In response to these concerns, both companies acknowledged the issues and requested a fast-tracked investigation to propose solutions. They have since worked collaboratively with the CMA to identify effective remedies, which include the sale of 15 convenience stores and 2 funeral homes in the problematic areas.

The CMA has provisionally determined that the proposed sales could adequately address its concerns. The authority will now delve deeper into these proposals, seeking feedback from third parties and considering potential buyers. If the CMA is satisfied with the remedies, it will conditionally clear the merger without necessitating a more in-depth phase 2 investigation.

Joel Bamford, Executive Director for Mergers at the CMA, expressed optimism about the proposed solutions, stating that they could help maintain competition for the benefit of local communities.