The Co-operative Group is poised to buy Somerfield’s 955 stores in a deal worth £1.6 billion as early as next week, according to reports.

The retailer is understood to be hoping to make an announcement about the deal next week, according to the Daily Mail.

The£1.6 million figure contrasts with earlier reports that said the sale would be worth about£2 billion.

Somerfield asked Citi to conduct an auction of the business after it abandoned a refinancing last year because its lenders wanted to charge it too much money.

Other parties interested in Somerfield were said to include Morrisons, Sainsbury’s and Asda.

Last week, Retail Week reported that Iceland boss Malcolm Walker was interested in acquiring as many as 30 Somerfield stores when the sale to Co-op is completed.

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