The Co-operative Group has completed the transfer of Southern Co-op into a wholly owned subsidiary, bringing the two societies closer to a full merger pending regulatory approval.
Transfer completed ahead of CMA decision
Southern Co-op now operates under Siena Co-operative Limited, a subsidiary of the Co-op Group, while keeping its current branding. Members approved the deal in May, but it still needs clearance from the Competition and Markets Authority. A decision is expected in late 2026.
Both co-operatives will function separately until then. Integration will only move forward if regulators approve the transaction.
The societies say the combination will create a stronger, more stable co-operative business. It will also offer better value to members, customers, and communities.
No immediate changes for stores or staff
Southern Co-op’s operations—173 food stores, 83 Starbucks locations, 69 funeral homes, three crematoria, and four burial grounds—will stay the same during the review. The society also runs 77 Welcome franchise stores and has about 330,000 members.
The Co-op Group operates roughly 2,300 food stores, 800 funeral homes, and a wholesale business supplying around 8,000 outlets. It also provides legal and insurance services and has seven million members.
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Leaders have assured that the transfer won’t disrupt daily operations. Employees, suppliers, and customers will see no changes while the regulatory process continues. Southern Co-op’s food, funeral, and Starbucks businesses will remain separate under Siena Co-operative Limited.
Kate Allum, the Co-op Group’s interim CEO, called the transfer a key moment for both 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 and drive growth across the UK.”
Southern Co-op CEO Ben Stimson thanked staff for their support. “We’re taking this step with an organization that shares our values and commitment to communities,” he said. He highlighted their long partnership, including through the Federal Retail Trading Society, which handles buying and supply for the sector.
The focus remains on the CMA’s review. If approved, the merger would form one of the UK’s largest co-operative enterprises. Until then, both societies will maintain separate operations.
The regulator will assess whether the deal reduces competition in local markets. Areas with overlapping funeral or grocery services may face closer examination. The societies argue the merger would improve their ability to serve those communities, not harm it.
Retailers like Asda have expanded similar community-focused programs, showing how large businesses can support local needs.
