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Co-op chief executive Peter Marks said that the acquisition would provide the “rocket fuel” for the retailer’s three-year growth plan.
Somerfield’s owners – a consortium composed of Apax Partners, Barclays Capital, Robert Tchenguiz and Icelandic bank Kaupthing – bought the chain for £1.1bn in 2005.
A merged company would operate more than 3,000 stores and generate sales of £8bn.
The Co-op saw profits fall 46% to £195.5m in 2007, after which it said it would spend £1.5bn to revamp the business and aimed to double its profits over the next three years.
It is thought up to 200 stores could be sold to avoid competition issues with the OFT.
