The UK's fifth largest supermarket chain, the Co-operative Group is to buy smaller rival Somerfield, which has around 30 stores in Kent.

A Somerfield spokesman said today the £1.57billion deal was "good news" for its staff. There has been insider speculation that some of the stores could be sold on, possibly to Morrisons, Waitrose and Iceland.

He said: "It is all about building a stronger business. It is very early days to talk about what the implications are."

Somerfield operates 880 local grocery retail outlets across the UK, including stores in Maidstone, Bearsted, Larkfield, Whitstable and Pembury.

In the year to April 2008 it generated net sales of £4.2billion.

Peter Marks, chief executive of the Co-operative Group said: "This is good news for consumers and for competition in the grocery market, where we will create a stronger fifth player in food and a convenience store chain with unrivalled geographic reach."