CONVENIENCE store chain McColl’s is to buy 298 shops from the Co-operative Group for £117 million in cash in a “transformational” deal for the business.

The deal includes in understood to include 59 stores in Scotland – where McColl’s Retail Group trades under the McColl’s and RS McColl brand, for its smaller newsagent stores.

The scale of the acquisition means it is conditional upon the majority approval of shareholders and the approval of the Competition and Markets Authority.

McColl’s said it expected to obtain CMA approval and the initial acquisition of stores in the portfolio would transfer in January 2017.

Chief executive, Jonathan Miller, commented: “This opportunity substantially accelerates our growth strategy. These stores are profitable, well invested, and the perfect size for our model.

The company has also announced a share placing to raise £13.1 million, with net proceeds helping to fund the acquisition.

Around 3,800 staff will transfer to McColl’s.