Co-op Group and Southern Co-op have announced a proposal to merge businesses to create a larger-scale cooperative society which will provide more value for members, customers and colleagues across the UK.

The deal would result in 300,000 Southern Co-op members joining the 7m Co-op Group members as part of an enlarged business.

The Co-op Group currently operates over 2,300 food stores and a wholesale business currently supplying nearly 8,000 outlets.

Southern Co-op runs over 300 food and Starbucks branches across the UK, and the deal would strengthen the co-operative movement across the South of England.

Kate Allum, interim CEO of The Co-operative said: “Joining forces across Co-op Group and Southern Co-op will create new opportunities for members to have access to a greater range of benefits across a wider society, with more trading opportunities and, in turn, more benefits for them and their communities.”

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The merger is subject to approval by Southern Co-op members and mandatory regulatory approvals.

Ben Stimson, CEO of Southern Co-op, said: “The Co-operative Group shares our values and our commitment to democratic membership, ethical sourcing and fair reward, as well as our dedication to supporting local communities.

“By coming together, we can secure the co-operative future of Southern Co-op as part of a stronger combined Co-op Group whilst creating an even stronger voice nationally and internationally to advance the co-operative cause.”

The transaction is expected to be completed in Q3 2026, when Southern Co-op members will become part of an enlarged Co-op Group.

Both businesses are expected to continue to be run independently as they seek CMA approval for the pending merger.