Co-op takeover of Southern Co-op faces competition probe

The UK's Competition and Markets Authority has warned that the Co-operative Group's planned takeover of Southern Co-op could substantially lessen competition. The deal, announced in April, would add Southern Co-op's 330,000 members and about 300 food, funeral, and Starbucks sites to the Co-op Group. The firms have until September 22 to propose measures to resolve the concerns, or the merger will face a phase two investigation. The companies had hoped to complete the merger by year-end after member approval in May.