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UK OFT clears Co-Op acquisition of Somerfield

The OFT has cleared the acquisition by Co-Operative Group Limited (Co-Op) of Somerfield, subject to the divestment of stores in 126 local areas. The OFT accepted that the merger would not give rise to any competition concerns in the grocery sector at the national level. However, the OFT was concerned about the possible effects of the merger on local competition in areas where the parties' stores overlapped with each other and where Somerfield stores overlapped with regional co-operative stores. The parties undertook consumer surveys in a large number of these areas to assess the competitive interaction between their stores, and offered divestments in those areas where the results suggested there was competition between the parties. Alan Overd and Ian Small of CRA's London Office worked on the transaction.

See the OFT press release for further details.

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