UK-based retailer the Co-operative Group (Co-op) has confirmed that it has entered into an agreement for the £1.565bn (€1.96bn) acquisition of Somerfield, on a cash-free, debt-free basis.

According to a group statement, the deal will see a combined food business operating over 3,000 grocery stores in the UK generating around £8bn (€10bn), making it the fifth largest food retailer in the UK with a market share of approximately 8 per cent.

'This is good news for consumers and for competition in the grocery market, where we will create a stronger fifth player in food and a convenience store chain with unrivalled geographic reach,' said Peter Marks, CEO at Co-op. 'For the Co-operative Group this is a transformational deal – cementing our position as the UK's premier community retailer and helping us significantly as we lead the renaissance of our brand.'

Peter Mason, CEO of Somerfield, said: 'The Co-operative Group and Somerfield have a similar focus in terms of customers, store types, product ranges and business vision. With Somerfield and the Co-operative Group as one business, we believe that we can learn from each other's strengths to ensure we continue to develop the best local grocery shops in Britain.'

The transaction is conditional on receipt of appropriate regulatory approvals.

Topics