A West Midlands co-operative society is set to merge with another in the South East.
Lichfield-based Central Co-op has opened discussions with Chelmsford Star Co-operative in Essex about the possible tie up.
If it goes ahead, the deal would see a transfer of Chelmsford Star into Central Co-op which would create a society with an estimated £1 billion turnover.
Together, they have been trading for more than 320 years and offer services such as funerals, property investment and holidays alongside the staple of Co-op convenience stores.
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Central Co-op has around 500,000 members and more than 450 trading sites in 22 counties mainly in the Midlands and south Midlands while Chelmsford Star is focussed on Essex where it operates 34 food stores alongside funeral homes and travel agencies.
Prior to the approval of the transfer, it was decided that Chelmsford Star's two department stores would be exited.
In a joint statement, Chelmsford Star's chief executive Barry Wood and Central Co-op counterpart Debbie Robinson said: "This is an incredibly exciting moment for co-operation.
"In an increasingly competitive marketplace, we believe that by harnessing our shared values we will build a stronger and more secure society.
"We welcome the proposed transfer and invite members to support this important moment which will deliver a future that continues to put members, colleagues and communities at the heart of everything we do."
The proposed transfer requires approval by members of Chelmsford Star at two meetings, being held in July and August.
