OFT greenlights Co-op’s Somerfield deal but 126 stores must be sold

The Co-operative Group's £1.57bn acquisition of Somerfield has been rubber-stamped by the Office of Fair Trading.

In a statement released this afternoon, the watchdog said The Co-op's acquisition of Somerfield "would not give rise to competition concerns at a national level".

However, The Co-op had agreed to dispose of 126 stores to resolve competition concerns in local grocery markets, the OFT added. The Co-op will now finalise a divestment package for the stores.

“The Co-op and Somerfield welcome this afternoon’s announcement by the OFT which, subject to us addressing a small number of local competition issues, clears the way for the creation of a stronger fifth player in the grocery market," said a Co-op spokesman.

“This is good news for consumers and good for competition.”