Greencore’s £1.2bn takeover of chilled rival Bakkavor has been greenlit by the CMA, after the markets watchdog accepted in principle the food giant’s plan to sell off its Bristol sauces and soups plant.
The Competition & Markets Authority had raised concerns in October that the mega-merger would lead to a “realistic prospect of a substantial lessening of competition” in own-label sauces in the UK.
To avoid a potential hold-up of the deal through a more in-depth investigation, Greencore will now put the £47m-turnover Bristol factory – representing about 1% of the combined group’s revenues – up for sale. The deal has now been accepted in principle by the CMA.
The CMA said the proposed sale “could resolve its competition concerns” and will “consult on the composition of the remedies package and the potential purchaser in due course”.
“The cost of our weekly shop matters to us all, so we must take decisions that ensure there is effective competition helping to keep product prices as low as possible on supermarket shelves,” said CMA executive director of mergers Joel Bamford.
“Our assessment found Greencore’s deal to buy Bakkavor could raise prices at the till.
“Following close engagement with Greencore and Bakkavor, we’ve secured remedies which we believe have the potential to address our competition concerns – so we have accepted the remedies in principle today and will now work towards a final resolution.”
Greencore and Bakkavor have said they now intend to complete their merger in early 2026, subject to final approvals by the CMA.
“The CMA’s acceptance in principle of the remedy is really good news,” said Greencore CEO Dalton Philips.
“In parallel, our focus is on finding the right new owner for our Bristol business. It’s been great to see such strong interest shown in what is a fantastic chilled soups and sauces operation, and I’m highly confident we’ll get a good outcome here.
“Looking further ahead, I’m extremely excited about what’s to come. Working with brilliant colleagues across Greencore and Bakkavor, we’ve got a huge opportunity to create real value – for our customers and consumers, our colleagues and our shareholders. Both teams are already collaborating really well on integration plans, and we’ll be ready to hit the ground running once the deal completes in early 2026.”
Bakkavor CEO Mike Edwards called the CMA clearance “fantastic news”.
“Our integration plans are well progressed, and we will continue to work collaboratively with Greencore to ensure a quick and smooth transition following completion.
“With everything starting to feel very real, we are even more excited about bringing together our two complementary businesses and the best people in the industry. Together, the combined group’s scale will enable us to create even more opportunities for colleagues, deliver even better quality, service and innovation for our customers, and generate value for our shareholders.”
The merger will create a convenience foods giant with a combined turnover of about £4bn.
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