Co-op set out to buy Somerfield
April 18, 2008
The Co-operative Group has said it is in talks about buying Somerfield.
The Co-op who are the fifth largest supermarket chain in the UK, have said that they believe there would be a “strong fit” between the two companies.
The company has also said that they intend to spend £1,5bn to revamp the business and improve profits which fell 46 per cent in 2007 to £195.5m.
The Co-operative is a mutual business that is run on behalf of 2.5 million members. In July last year the firm merged with fellow mutual United Co-operatives.
In total the Co-op employs 85,000 people in the UK and has over 4,300 retail outlets across the country. Customer member’s dividend payments more than doubled from £22m to £45.
“The Co-operative Group now has the critical mass necessary to deliver real change”, said Co-op executive Peter Marks.
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