The Competition & Markets Authority has started the ball rolling on an investigation into the proposed £1.2bn merger between Greencore and Bakkavor.
It will consider whether the deal will result in a “substantial lessening of competition” in the food-to-go, ready meals and prepared food markets in which the two companies operate.
The deal watchdog is now inviting comments on the possible impact of the combination of the two convenience food manufacturers.
Interested parties have until 22 July to submit any comments before the CMA officially starts a phase 1 investigation into the merger.
The start of the competition process comes as Bakkavor shareholders voted overwhemingly in favour of the deal yesterday, with 99.98% supporting the offer from Greencore.
What does the mega-merger mean for Greencore and Bakkavor?
Greencore secured an agreement in principle from Bakkavor’s board for the £1.2bn takeover in April after being rebuffed twice with earlier bids. It formalised the cash and shares deal a month later in May
The merger will create a convenience foods giant with combined turnover of about £4bn.
The pair supply all the major supermarkets with a mixture of sandwiches, soups, salads, ready meals, pizza and desserts.
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