The Co-op Group has agreed to divest of 298 of its smaller Food stores in the UK.

The stores will be sold to McColl’s Retail Group (McColl’s) for £117m.

"The Co-op Food business continues to move forward with a clear momentum and purpose to deliver a compelling and convenient shopping experience."

Expected to close in November, the deal is subject to approval from the UK Competition and Markets Authority and McColl’s shareholders.

Proceeds from the divestment will be reinvested to further deliver the Co-op’s growth strategy.

Over the last two years, Co-op opened approximately 200 new stores and aims to acquire 100 new stores this year.

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Co-op Food CEO Steve Murrells said: "The Co-op Food business continues to move forward with a clear momentum and purpose to deliver a compelling and convenient shopping experience for our millions of customers and members."

Murrells also commented that the announcement is completely in line with its strategy.

He added: "The proceeds will be reinvested to drive sustainable growth for our members and I’m delighted that all 3,808 colleagues will transfer to McColl’s on the same terms and conditions.”