Co-op completes takeover of Somerfield

The £1.6 billion takeover of Bristol-based firm Somerfield by the Co-Op has been completed.

About 800 jobs will go at Somerfield's HQ at Whitchurch as its work is transferred to the Co-Op base in Manchester.

The process is likely to take up to two years, with the Somerfield brand remaining in some locations throughout that period as stores are gradually converted to The Co-operative brand - although the Somerfield name will disappear from the high street by 2011.

The Somerfield Bristol headquarters will be retained for about 18 months, while all head office functions are moved to Manchester on a phased basis.

Somerfield has 10 branches in and around Bristol, employing 400 staff, which will become Co-op stores in the next 18 months.

The combined Somerfield and Co-Op business will be the Britain's fifth largest grocer with more than 3,000 outlets.

Tesco, Asda, Sainsbury's and Morrisons are the biggest four supermarket chains in Britain.

Paul Mason, Chief Executive of Somerfield, said: "Today marks the culmination of the phenomenal turnaround in the Somerfield business over the last three years. The Co-operative Group is buying a business that is in rude health, with strong, positive like-for-like sales, and a profit margin that has doubled since the business was taken private in 2005.