The mutually owned Co-operative Group is known more for its touchy-feely corporate ethos than for its commercial instincts. Has the UK’s fifth largest supermarket chain, which on Wednesday agreed to buy Somerfield, its smaller rival, secured a good deal?

In 2005 a consortium including Apax, the private equity group, and property tycoon Robert Tchenguiz paid about £1.2bn for Somerfield, including equity and net debt, and raised £1.4bn of debt in the process. During its ownership, the consortium reduced debt to £800m via disposals and on Wednesday agreed to sell Somerfield for £1.6bn.