The UK’s Competition and Markets Authority (“CMA”) recently published its Phase 1 decision on Co-operative Group Limited’s (“CGL”) acquisition of The Southern Co-operative Limited (“Southern”) – a transaction that was completed on July 26, 2026. Both companies operate grocery stores, including convenience shops and supermarkets, across the United Kingdom and provide services for both at-need and pre-paid funerals. Southern additionally runs a number of crematoria and burial sites in parts of the UK. During the CMA’s review of the transaction, the companies formally conceded that the deal – which involves around 19 convenience stores and two funeral service sites – is likely to significantly reduce competition in local grocery and funeral services markets.
Based on these concessions, the CMA concluded that the deal poses a “realistic prospect of a substantial lessening of competition” in UK markets. Because the companies asked the CMA to fast track the review process, they have until September 22, 2026 to propose remedies — known as undertakings in lieu or UILs — to resolve the CMA’s concerns. It is important to note that the CMA found no competition risk that potentially limited rivals’ access to Southern’s crematoria and, therefore, concluded that the merged business “would not have the incentive to foreclose.” If adequate remedies are not offered, the CMA will escalate the case to a more detailed Phase 2 investigation under the Enterprise Act 2002.
CGL/Southern Merger Inquiry Timeline | CMA – Summary of Phase 1 Decision