Midcounties Co-operative in talks with Central Co-op on ‘landmark merger’

The Midcounties Co-operative and Central Co-op, the UK’s two largest independent retail co-operatives, are in “advanced discussions” about a merger deal.

 

The talks have been going on “for many months” and, if approved by both boards and members, would bring together a range of businesses, including 70 travel agencies.

 

Combined membership is one million and annual sales for both sits at £1.8 billion.

 

The merger is intended to “deliver significant economies of scale” and “operational efficiencies” that would reduce costs and help create sustainable growth.

 

The move would retain “unique regional identities of its trading areas”, as demonstrated by the recent transfer of the Chelmsford Star Co-operative into the Central Co-op.

 

Members of both societies will be contacted in the coming weeks with further information on the consultation and voting process.

 

Midcounties Co-operative president Irene Kirkman said: “Midcounties and Central have a rich heritage and shared values and together we can lead the way in showing how co-operation can create a lasting and positive impact in the UK.

 

“One of the many values we share is the commitment to remaining independent and fully owned by our members, so it will be for our members to determine our future.”

 

Central Co-op president Elaine Dean added: “As co-operators, we know that by working together, we can achieve more for our members, colleagues and communities.

 

“By combining our strengths, we can create a co-operative society that is more influential, more resilient and more ambitious, while helping ensure that the co-operative movement continues to grow and inspire.

 

“We look forward to continuing discussions with the Midcounties board over the coming weeks.”

 

Midcounties Co-operative chief executive Phil Ponsonby said it was “a unique opportunity to create a society for the future”, adding the potential merger would “strengthen our ability to innovate” and create “a strong and stable platform for future growth”.

 

Central Co-op chief executive Debbie Robinson added the move could “increase our ability to deliver value” for members and communities and combine strengths “built to thrive for the long-term”.