The Competition and Markets Authority (CMA) has concluded its Phase One review of the proposed merger between Greencore and Bakkavor.
Earlier this year, the two food-to-go giants announced a £1.2 billion takeover agreement, set to form a UK food group with a combined revenue of £4 billion.
The watchdog determined that the proposed acquisition does not raise significant competition concerns.
While the CMA had previously expressed worries that the deal could substantially reduce competition in the UK chilled sauces market, the companies are now required to implement measures addressing these potential issues to prevent the merger from progressing to a more detailed Phase Two investigation.
Dalton Philips, chief executive of Greencore, said: “The CMA process has been constructive, and the Phase One decision is a welcome one, confirming our view of the highly complementary nature of our businesses and product portfolios across ‘food for now’ and ‘food for later’.
“I am really grateful to my colleagues at Greencore and Bakkavor for successfully getting us to this point, and we are now working with the CMA and Bakkavor for the benefit of all our stakeholders to complete the Bakkavor transaction early next year.”
Mike Edwards, chief executive of Bakkavor, added: “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.
“Bakkavor is in great shape, and we remain excited about joining the Greencore business and unlocking all the associated benefits we have highlighted for colleagues, customers and shareholders. I would like to thank everyone in Bakkavor and Greencore who has worked so hard in getting us to this advanced stage in the process.”
Going forward, the companies intend to collaborate with the CMA to reach a mutually acceptable agreement.
