Bako North Western, the Preston-based company, has bought sister company Bako Northern & Scotland in a deal to create a business with a turnover of more than £100m. 

British Baker reported on the deal in May, which was then subject to approval by the Competition and Markets Authority (CMA).

Bako North Western is expecting to achieve a turnover of £72.2m by the close of September 2015, while the County Durham-based Northern & Scotland arm of the company has a turnover of £31.7m.

It will target business opportunities involving large national bakery, restaurant and café chains in northern and Scottish markets.

HSCB financed the deal. Jason Trigg, area corporate director, HSBC Manchester, said: “For more than five decades, BAKO North Western has enjoyed a strong reputation in the British baking industry for its high standards of service and quality baking products.

“We are proud to support BAKO North Western and look forward to helping them achieve their growth aspirations.”

Bako North Western, led by chief executive Mark Tomlinson, has been expanding in recent years and this deal comes after the acquisition of Bako London & South East in July 2013.

It means that now just Bako Wales and Bako Western in the Bako Group are not run by the North West arm.

The CMA cleared the merger in July when a statement said: “The transaction will bring together two highly complementary organisations and will build on the strengths of both parties to continue to deliver excellent products and service to customers.”