The boards of the Co-op Group and Southern Co-op have announced proposals to combine and create a larger co-operative society.
The proposal is subject to approval by Southern Co-op members and mandatory regulatory approvals. If approved, the proposal would result in 300,000 Southern Co-op members joining the seven million Co-op Group members as members of an enlarged Co-op Group.
Southern Co-op operates more than 300 food, funeral and Starbucks coffee branches across the south of England, with the Co-op Group operating over 2,300 food stores and a wholesale business supplying around 8,000 outlets.
The boards said the transaction would strengthen the co-operative movement, particularly in the South of England, and will reportedly provide greater value to members through a wider co-operative offering.
“A combined co-operative… will provide new and strengthened opportunities for members, customers, colleagues and suppliers.”
Debbie White, chair of The Co-operative Group, commented: “The co-operative model is more important than ever for the health and success of communities across the UK, and a combined co-operative, bringing together over 300 years of co-operative experience, will provide new and strengthened opportunities for members, customers, colleagues and suppliers of both of our co-operatives.”
Kate Allum, interim CEO of The Co-operative Group, stated: “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.”
Southern Co-op CEO Ben Stimson added: “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.”
