The UK’s competition watchdog has indicated that the £2.1 billion acquisition of Bakkavor by Greencore is likely to “substantially” reduce competition in the supply of own-label chilled sauces within the UK. This assessment stems from an investigation by the Competition and Markets Authority (CMA), which began in July and has now completed its phase one review.
The CMA’s investigation specifically focused on own-label chilled sauces, as well as own-label Italian chilled ready meals and salads. This comprehensive examination is crucial to understanding the impact of the merger.
Greencore and Bakkavor now have until November 3, 2025, to address the CMA’s concerns related to their chilled sauces. The CMA has identified only two other competitors, 2SFG and Billington Foods, as having some degree of constraints on these firms; however, they are considered “weaker competitors.”
Despite the concerns raised by the CMA, both Greencore and Bakkavor have welcomed the announcement. They pointed out that most of the areas reviewed did not reveal any significant issues. In fact, the CMA concurred with the companies that the transaction does not present any competition concerns regarding approximately 99% of the combined group’s revenues.
“The CMA process has been constructive and the Phase 1 decision is a welcome one,” stated Dalton Philips, CEO of Greencore.
Echoing this sentiment, Mike Edwards, CEO of Bakkavor, noted that the news is “a significant step forward in the process,” providing “clarity” that enables the companies to “work at pace and stay on track” to finalize the transition by early 2026.
Should the companies fail to propose an acceptable remedy, the CMA will advance to a more detailed phase 2 investigation.
Greencore operates as a food manufacturer, supplier, and distributor, focusing primarily on convenience food production in the UK. On the other hand, Bakkavor is a multinational entity that specializes in the manufacturing and supply of fresh prepared foods across the UK, Ireland, and the United States.
