Co-operative firms in merger discussions

The two co-operative societies will put the merger to a members' vote

Two co-operative brands have announced they are "advanced discussions" over a possible merger.

The Midcounties Co-operative and Central Co-op said the merger would create a new society with more than 500 food stores, 170 funeral homes, 70 travel agencies and almost 50 nurseries.

They would have "the scale and resilience to deliver greater value for its members, colleagues, customers and communities," bosses said.

Discussions about closer ties had been taking place for a number of months, they said on Wednesday.

The boards of the both companies planned to ask their members to consider proposals in the coming weeks, they added.

The combined company would have more than one million members as well as 13,000 employees, £1.8bn in annual sales, and more than 500 investment properties across the UK.

'Lasting and positive impact'

"As co-operators, we know that by working together, we can achieve more for our members, colleagues and communities," said Elaine Dean, president of Central Co-op, which is headquartered in Staffordshire.

"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."

Irene Kirkman, president of Warwickshire-based Midcounties Co-operative, said the two firms had shared values and a rich heritage.

"Together we can lead the way in showing how co-operation can create a lasting and positive impact in the UK," she said.

She added the two co-operatives had a commitment to remaining independent and fully member-owned.

Members of both societies will be consulted on the proposals, and will be able to vote on any plans that are put forward.

The announcement follows the recent transfer of Chelmsford Star Co-operative into Central Co-op.