The Co-operative Group has completed the transfer of Southern Co-op into a wholly owned subsidiary, marking a major step in the proposed combination of the two societies.

Southern Co-op has transferred to Siena Co-operative Limited, a subsidiary of the Co-op Group, but will continue to trade under its existing name.

The deal follows approval from Southern Co-op members in May and remains subject to clearance from the Competition and Markets Authority.

Both co-operatives will continue to operate separately while the regulator carries out its review, with a decision expected later in 2026. Integration plans will progress if the transaction receives approval.

The societies said the combination would create a co-operative business with greater scale and resilience, while delivering more value for members, customers and communities.

Southern Co-op businesses to operate as normal

Southern Co-op currently operates 173 food stores, 83 Starbucks coffeehouses and 69 funeral homes.

Its estate also includes three crematoria, four burial grounds and 77 Welcome franchise stores, while the society has around 330,000 members.

The Co-op Group operates approximately 2,300 food stores and 800 funeral homes, alongside a wholesale business supplying around 8,000 outlets.

It also runs legal services and insurance operations and has seven million members.

Southern Co-op’s food, funeral and Starbucks businesses will continue to operate separately under Siena Co-operative Limited while the CMA process is under way.

The businesses said there would be no immediate changes for members, employees, suppliers or local communities.

Co-op hails ‘historic milestone’

Co-op Group interim chief executive Kate Allum said the transfer marked a “historic milestone” for the two societies and the wider co-operative movement.

“By combining over 300 years of co-operative heritage, we are building a stronger future for members, customers and communities,” she said.

“Together, we can create more opportunities, deliver greater value, and drive the growth of co-operation across the UK for generations to come.”

Southern Co-op chief executive Ben Stimson thanked colleagues for supporting the business through the process.

“As we take this next step, we’re doing so alongside an organisation that shares our co-operative values and our commitment to making a positive difference in the communities we serve,” he said.

“Our organisations have worked together successfully for many years, including through the Federal Retail Trading Society buying and supply group and the wider co-operative movement, and today’s announcement reflects the strength of that longstanding relationship.”

The two societies already work together through the Federal Retail Trading Society, which supports buying and supply arrangements across the co-operative sector.

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