The £1.2bn takeover of Bakkavor by fellow food-to-go giant Greencore is moving towards completion in early 2026 after the Competition and Markets Authority (CMA) accepted in principle a proposed remedy to resolve merger concerns.
In its recently concluded Phase 1 investigation, the CMA had flagged up concerns that the deal could result in a substantial lessening of competition in own-label chilled sauces in the UK, used for the likes of pasta and stir-fry dishes.
“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,” commented Joel Bamford, executive director of mergers at the CMA. “Our assessment found Greencore’s deal to buy Bakkavor could raise prices at the till.”
To avoid a further delay in the acquisition via a Phase 2 investigation, Greencore proposed the sale of its manufacturing site in Bristol which produces sauces as well as soups. The factory generated revenues of approximately £47m in the year ended 26 September 2025, representing roughly 1% of the turnover of the combined group.
Greencore noted it was currently engaged with a number of prospective purchasers. The Dublin-headquartered business operates 15 other sites across the UK, making various ‘food for now’ ranges of pre-packed sandwiches, ready meals, salads, and sushi. London-based Bakkavor produces salads and ready meals as well, which the CMA probe didn’t raise concerns on, while it also manufactures a portfolio of ‘food for later’ items such as pizzas, breads, desserts, and chilled dips at 20 factories nationwide.
CMA’s Bamford noted that, following close engagement with Greencore and Bakkavor, the proposed remedy had the potential to address competition concerns. “We have accepted the remedies in principle today and will now work to towards a final resolution,” he added.
Greencore CEO Dalton Philips called the CMA’s acceptance in principle of the remedy “really good news” and said it means it could now look to complete the Bakkavor acquistion.
“We’ve got a huge opportunity to create real value – for our customers and consumers, our colleagues and our shareholders,” he said. “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.”
Greencore recently upgraded its full-year profit guidance to £125m after “another excellent quarter”, with Bakkavor’s latest half-year financial report leaving its profits expectation towards the upper end of the £120m-£126m range. The proposed £1.2bn takeover between the firms is set to create a food manufacturing group with a combined revenue of £4bn.
Meanwhile, Phase 1 of the CMA’s merger inquiry into the acquisition of Hovis by Kingsmill owner Associated British Foods is still ongoing, with the invitation to comment two-week period wrapping up on 2 October. A deadline for the Phase 1 decision has yet to be announced.
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