The sale of convenience grocer Somerfield could be agreed as early as next week, it is understood.

Exclusive talks have begun with the Co-operative Group, after the mutually owned retailer increased the amount it was willing to pay at the end of last week. Its original offer of approximately£1.7 billion was deemed too low by Somerfield’s owners.

The Co-op was the only bidder for the entire Somerfield business. Other grocers were interested in cherry-picking Somerfield’s estate.

Somerfield was put up for sale by its owners – including private equity group Apax and tycoon Robert Tchenguiz – in July. They hoped to get as much as£2.5 billion for the 900-store group, but are thought to be willing to settle for£1.9 billion.

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