Earlier this summer, the Co-operative Group revealed a £1.75billion bid for the Somerfield chain of supermarkets, sparking fears Selkirk would lose either it’s LBACS store or its Somerfield supermarket.

This bid is currently the subject of a review by the Office of Fair Trading (OFT), which could decide to send it on to the Competition Commission.

Now comes news of the merger proposal, which if approved by members at a series of meetings in the autumn, will see the LBACS supermarket in the royal burgh re-branded as The Co-operative Group.

Asked if they thought they would be able to operate two stores in one town, spokesperson Joanna MacKerracher gave Jedburgh as an example where this already happens.

In Jedburgh, LBACS has its only superstore in the Borders and the town also has an Alldays store – owned by The Co-operative Group.

“There is very little overlap between the Co-operative Group and LBACS,” she told The Wee Paper. “In Jedburgh, the Co-op has a successful convenience store (Alldays) and LBACS has a supermarket and we would see no reason to change that.”

However, that might not be the view of the OFT, which could decide to refer the matter to the Competition Commission, which in turn could force the Co-operative Group to sell off one of the two food stores in Selkirk.

In 2005, Morrison’s was ordered by the Commission to sell off one of its two stores in Peebles after acquiring the Safeway group.

While she could not comment on any future decision by the OFT, Ms MacKerracher says, if the merger is approved by members, it will be “business as usual”.

The only casualty flagged up so far will be staff at the LBACS head office in Galashiels.

Those operations would be transferred to Glasgow, resulting in 47 jobs in Galashiels being affected.

Of those 47 jobs, 26 are administration staff and 21 are in management. Of these, eight workers are likely to take early retirement and nine are expected to be employed by the Co-operative Group’s Scottish division.

Chief executive Bob Jamieson, who will take early retirement himself next year if the merger is approved and once the two organisations are fully integrated, says the timing of the move made business sense.

“We are approaching this proposed merger from a position of considerable strength. We have a robust trading position and a strong balance sheet, but we believe that the best way to maintain Co-operative trading in the areas in which we operate is to seek this merger now.”