The Office of Fair Trading (OFT) has said that the proposed merger between the Co-operative Group and Somerfield “would not give rise to competition concerns at a national level”.
It came to this stance after the Co-op said it will dispose of some stores after competition concerns were raised.
A number of problem areas arose at a local level, the OFT said, because the two firms currently compete against each other in those areas.
And it has been decided that suitable buyers will be found up-front at the sites where the concerns were raised, so that the remedy is suitable.
“Once finalised, the divestment package will directly safeguard the welfare of many thousands if not millions of UK consumers by restoring grocery store competition in the 126 local areas affected, while allowing an otherwise likely pro-competitive merger to go ahead,” chief executive at the OFT John Fingleton said.
In response, the Co-op welcomed the decision and said it will lead to “the creation of a stronger fifth player in the grocery market.
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