The Co-operative Group has secureed the purchase of Somerfield for £1.56bn meaning the Co-op will operate 3000+ grocery stores.
Somerfield operates 800 local grocery stores in the UK, and in year to April 2008 it generated net sales of £4.2bn.
The Co-operative hoped that the move woud mean combined net sales of around £8bn, "making it a market leader in convenience retailing and the fifth largest food retailer in the UK with a market share of 8%.
Celebrating the move, Peter Marks, chief executive of the Co-operative Group, said: "We will create a stronger fifth player in food and a convenience store chain with unrivalled geographic reach".
He added: "The acquisition will provide the rocket fuel for our three-year growth plan". He said the businesses shared the same outlook: "There is a strong strategic fit between the two businesses, with both focused on the top-up and convenience shopping market. We anticipate real cost and revenue synergies".
Marks acknowledged that issues of competition in areas where Co-op and Somerfield are currently both present would have to be addressed by the Co-op and the OFT: "there are likely to be some local competition issues."
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