McColl’s, the newsagent and convenience chain, will be acquiring 298 stores from the Co-op Group at a cost of £117 million. The deal is currently awaiting approval of both shareholders and the Competitions and Markets Authority.

McColl’s will also place 10,460,732 shares to new and existing investors to raise approximately £13.1 million before expenses, the net proceeds of which will be used to help fund the purchase.

Chief executive of McColl’s, Jonathan Miller, said: "I am delighted to announce the acquisition of 298 quality convenience stores in a transformational deal for McColl's. This opportunity substantially accelerates our growth strategy and expands our neighbourhood presence for the benefit of our customers.

“These stores are profitable, well invested, and the perfect size for our operating model. We expect the transaction to be significantly earnings enhancing for our shareholders.”

With a current portfolio of 933 stores, the convenience store group says the stores will be a strong strategic fit based on location and demographics, store fabric, turnover and size.