The Co-operative Group said Wednesday it had struck a deal to acquire British supermarket Somerfield for 1.56 billion pounds (US$3.12 billion).
The deal would secure the Co-op's place as Britain's fifth-biggest food retailer.
The Manchester, England-based Co-operative Group Ltd. is the world's largest consumer cooperative. It already has some 2,200 stores, part of its empire of food, drug, travel, financial and funeral services. The Somerfield Group operates about 900 stores, including 140 gas stations.
Somerfield was purchased by a consortium of investors in 2005 for 1.1 billion pounds (then about US$1.9 billion). The consortium, which includes property tycoon Robert Tchenguiz, private equity firm Apax Partners and investment bank Barclays Capital, was reportedly seeking about 2 billion pounds (US$4 billion) for the supermarket chain.
The Co-op, a mutual company owned by 2.5 million members, recently announced plans to double its profits and invest 1.5 billion (US$3 billion) in its real estate holdings.
Co-op Chief Executive Peter Marks said Somerfield's acquisition would provide "rocket fuel" for his group's growth plans.
The deal is still subject to regulatory approval.
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