The Competition and Markets Authority (CMA) has given complete approval for the merger of the Co-op Group and Southern Co-op, marking a major milestone for the businesses.

This comes after a review from the watchdog this year, which raised concerns that the merger could reduce competition in certain local areas.

As part of the agreement made with the CMA, 15 convenience stores and two funeral homes would be divested as a solution for the concerns around competition.

Earlier this year a subsidiary of Co-op Group, Siena Co-operative Limited, acquired Southern Co-op and two businesses operated separately while awaiting the CMA’s approval.

The final approval now allows the two organisations to begin the process of merging the companies together and moving forward with integration plans.

The companies will now begin the merger process with the timing of transfers differing across various parts of the organisations.

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Both of the businesses will continue to operate independently and normally until detailed integration plans are finalised.

This marks a major move for the companies to create one of the biggest co-operative societies in the UK with over 300 years of operations.

Kate Allum, interim CEO of The Co-operative Group, said: “Today is a significant moment for our two societies and the wider co-operative movement. CMA approval gives us the green light to begin an exciting new chapter of co-operation.

“By bringing together more than 300 years of co-operative heritage, we have the opportunity to build an even stronger Co-op, with greater scale and resilience, and the ability to deliver more for our members, customers and communities.”

Southern Co-op currently operates 173 food stores and over 70 franchise locations, and Co-op Group has 2,300 food stores and a wholesale business.