UK CMA seeks remedies to approve Greencore acquisition of Bakkavor

(Alliance News) - The UK competition regulator on Monday said Greencore Group PLC and Bakkavor Group PLC need to offer remedies to obtain clearance for their proposed merger.

The Competition & Market Authority said the Phase 1 investigation found that Greencore's acquisition of Bakkavor "may be expected to result in a substantial lessening of competition within a market or markets" in the UK.

Both Dublin-based Greencore and London-base Bakkavor are convenience food providers.

The CMA said it is considering whether to accept an undertaking from the pair. If no undertaking is offered or accepted, the regulator will refer the merger to a full Phase 2 inquiry.

Greencore and Bakkavor on Monday said they are "pleased" by the CMA announcement, highlighting that no competition concerns were raised in relation to 99% of the revenue of the combined group. They noted the area of concern is the supply of won-label chilled sauces.

Greencore said it has the opportunity to put forward remedies, saying the pair will "work constructively" with the CMA to achieve approval in time for its previously guided early 2026 completion.

"Today's positive news from the CMA is a significant step forward in the process, providing welcome clarity which means we can collectively work at pace and stay on track to complete the transaction in early 2026," said Bakkavor Chief Executive Officer Mike Edwards.

Back in May, Greencore and Bakkavor agreed a cash-and-shares deal that valued Bakkavor at GBP1.2 billion at the time. Greencore will pay 85 pence in cash, plus 0.604 of a new Greencore share for each Bakkavor share.

Greencore shareholders will own 56% of the enlarged company, and Bakkavor shareholders 44%.

Greencore shares were down 1.6% to 244.00p early Monday in London. Bakkavor shares were up 0.9% to 230.00p. Greencore has a 1.08 billion market capitalisation to Bakkavor's GBP1.33 billion.

By Tom Waite, Alliance News editor

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