United KingdomGOV.UK
CMA refers Co-op/Southern Co-op merger to phase 2 absent undertakings
The CMA found the Co-op/Southern Co-op deal may substantially lessen competition and will send it to phase 2 unless the parties offer acceptable undertakings.
By Taxxa AI OyPublished 15 September 2026
The Competition and Markets Authority announced its phase 1 decision on the Co-operative Group / Southern Co-operative mergerGOV on 15 September 2026. On the evidence currently available, it has decided that it is or may be the case that the merger has resulted, or may be expected to result, in a substantial lessening of competition within a market or markets in the United Kingdom
GOV. The merger will be referred for an in-depth phase 2 investigation unless the parties offer an acceptable undertaking to address the competition concerns
GOV. The full text of the decision is to be published shortly, with a 103KB summary of the phase 1 decision already posted.
That framing follows the statutory reference test: the CMA must refer a completed merger for phase 2 where it believes a relevant merger situation has been created and that its creation has resulted, or may be expected to result, in a substantial lessening of competition — unless, among other exceptions, it is considering whether to accept undertakings instead of making the reference.
The decision replaces the pending 28 September 2026 phase 1 deadline row in the statutory timetable. The case history shows the inquiry launched on 30 July 2026 by notice to the parties, following a 23 July 2026 initial enforcement order under section 72(2) of the Enterprise Act 2002 served on Co-operative Group Limited and Siena Co-operative Limited, and a 4 June 2026 invitation to comment that opened information-gathering before the formal investigation. Pre-notification commenced on 4 June 2026 once the parties supplied the necessary information.
Alongside the decision the page adds a 3 September 2026 derogation (197KB, posted 15 September), the latest in a series of consents varying the initial enforcement order through July and August. A final editorial change points data-protection queries to the CMA's personal information charter rather than a standalone privacy notice.
Parties and third parties can send written representations on competition issues to coopgroup.southerncoop@cma.gov.uk, or to Jeremy Chan, Principal Case Officer, at jeremy.chan@cma.gov.uk or on 020 3738 6784. Representations are processed under Part 3 of the Enterprise Act 2002.
The legal basis is the Enterprise Act 2002, Part 3 (completed-merger reference duty) and section 72 (initial enforcement orders).
If affected by the Co-op/Southern Co-op deal, send competition representations to coopgroup.southerncoop@cma.gov.uk and prepare for a phase 2 timetable if no undertakings are offered.