Greencore’s Acquisition of Bakkavor Clears Initial CMA Hurdle

Greencore Group PLC (LON: GNC) and Bakkavor Group plc received positive news from the UK's Competition and Markets Authority (CMA) regarding Greencore's proposed acquisition of Bakkavor.

The CMA's Phase 1 investigation concluded that the transaction does not raise significant competition concerns in most areas reviewed.

The CMA determined that approximately 99% of the combined group's revenues would not be affected by competition issues. The regulator identified a potential concern regarding the supply of own-label chilled sauces in the UK, a relatively small portion of the overall deal.

Greencore now has the opportunity to propose remedies to address the CMA's concerns, potentially avoiding a more extensive Phase 2 investigation. The companies are collaborating with the CMA to resolve the matter, aiming to finalize the transaction in early 2026, as initially projected.

Dalton Philips, CEO of Greencore, expressed his gratitude to colleagues and stated that “The CMA process has been constructive and the Phase 1 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”.

Mike Edwards, CEO 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.

The CMA's Phase 1 decision removes an initial hurdle for the Greencore-Bakkavor deal. While the chilled sauces issue requires attention, the overall outlook is favorable.

The successful completion of the Bakkavor acquisition would create a leading UK food producer, strengthening Greencore's position in the market. The integration process and realization of synergies will be key factors to watch in 2026 and beyond.