Switzerland's Coop retail group has been given the green light by the Swiss competition authorities for its proposed takeover of compatriot store operator Waro.

The deal, which will take effect retrospectively from 1 January 2003, will see Coop take control of the 28 Waro stores previously owned by Denner Rast.

According to Coop , the takeover will allow it to finalise its expansion programme first begun in 2001 and which has focused on increasing the number of larger outlets operated by the group. The various Waro stores will be converted to supermarkets, megastores or other Coop group fascias.

The Waro stores converted to the Coop fascia will offer not only the Swiss group's own label products, but will also sell a range of branded goods. They will also stock the Coop's range of organic and ethical food products.

Coop said the new stores would appeal to consumers not only because of this varied product offering, but also because of their modern design. The company will spend SF100 million (€66m) on refitting the Waro stores, with the work beginning in July and being completed by the end of the year.