UK's CMA opens probe into completed Southern Co-operative deal

The UK Competition and Markets Authority formally launched its phase 1 merger inquiry on 30 July 2026 into the already completed acquisition of The Southern Co-operative by the Co-operative Group. The deadline for the phase 1 decision runs to 28 September 2026. It was preceded by an invitation to comment on 4 June 2026 and an initial enforcement order on 23 July 2026 barring further integration until the inquiry concludes. The Co-operative Group runs more than 2,300 stores; the Southern Co-operative operates around 173 stores, Starbucks outlets and a funeral business in the south of England. Update (15 Sep 2026): On 15 September 2026 the CMA published its phase 1 decision: the merger may be expected to result in a substantial lessening of competition — in convenience grocery retail in nine local areas where the two societies overlap, and in funeral services (pre-paid and at-need) in one further area. The parties have until 22 September 2026 to offer undertakings in lieu; if none are offered, or the CMA finds them insufficient, it will refer the merger for an in-depth phase 2 investigation (Talking Retail, 15 Sep 2026). Update (29.09.2026): The CMA provisionally considers the undertakings offered by the Co-op Group – the sale of 15 convenience stores and two funeral homes – suitable to resolve its concerns; after consultation and a review of the buyers, the deal could be cleared without a phase 2 investigation (Talking Retail, 29.09.2026).