Greencore to complete Bakkavor takeover in January after CMA approval

(Alliance News) - Greencore Group PLC said its GBP1.2 billion acquisition of peer Bakkavor Group PLC will be completed in January, after competition clearance was granted on Wednesday.

Greencore is a Dublin-based manufacturer of convenience foods supplied to British and Irish retailers and Bakkavor is a London-based manufacturer of fresh prepared food, which supplies to the UK and the US.

The go-ahead comes after the UK Competition &Markets Authority accepted Greencore's offer to sell its Bristol chilled soups and sauces manufacturing site to Compleat Food Group (Holdings) Ltd.

Back in May, Greencore and Bakkavor agreed a cash-and-shares deal that valued Bakkavor at GBP1.2 billion at the time.

However, the CMA was concerned the deal could "could result in a substantial lessening of competition in the supply of own-label chilled sauces" such as those for pastas and stir-frys, leading to higher prices for the consumer and a possible reduction in quality.

To secure approval, Greencore had offered to sell its chilled soups and sauces facility in Bristol, which generated GBP47 million of revenue in financial 2025.

The CMA on Wednesday said it "considers that the undertakings given...by Greencore are appropriate to remedy, mitigate or prevent the substantial lessening of competition, or any adverse effect which may result from the transaction".

As a result, the anticipated acquisition will not be referred to an in-depth, phase two investigation.

With the CMA condition now satisfied, alongside US antitrust clearance, Greencore said the recommended acquisition is on track to be completed on January 16, when the scheme of arrangement is expected to become effective.

Greencore said the acquisition remains subject to the satisfaction or waiver of the remaining conditions to the scheme, including sanction of the scheme by the court.

Shares in Greencore were up 1.4% to 252.50 pence on Wednesday morning in London, while Bakkavor was up 0.6% to 236.00p.

By Roya Shahidi, Alliance News reporter

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