Co-op to buy Somerfield for £1.57bn

The Co-operative Group is set to buy supermarket rival Somerfield for £1.57 billion.

The deal will go ahead on a cash free and debt free basis.

Somerfield has 900 stores employing around 55,000 people.

The Co-op – run mutually for its 2.5 million members – has 4,300 supermarkets and smaller outlets.