Deal is likely to complete in early 2026 after major obstacle was overcome
Greencore’s acquisition of Bakkavor has moved a step closer after the UK’s Competition and Markets Authority (CMA) proposed to accept remedies offered following its investigation into the deal.
A Phase 1 investigation by the CMA found that the purchase could result in a substantial lessening of competition in the supply of own-label chilled sauces, which could lead to higher prices for UK shoppers and/or a reduction in product quality.
No issues were raised in relation to the two companies’ activities in prepared salad.
To resolve the CMA’s concerns in the sauce market, the businesses offered to sell Greencore’s only chilled sauce and soups manufacturing plant in Bristol. The CMA said it believes the move could resolve its competition concerns and will consult on the composition of the remedies package and the potential purchaser in due course.
The Bristol site and its related business generated income of around £47mn in the year ended 26 September 2025, representing about one per cent of the revenues of the combined group.
Joel Bamford, executive director of mergers at the CMA, said: ”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. Our assessment found Greencore’s deal to buy Bakkavor could raise prices at the till.
“Following close engagement with Greencore and Bakkavor we’ve secured remedies which we believe have the potential to address our competition concerns – so we have accepted the remedies in principle today and will now work to towards a final resolution.”
The CMA announcement was welcomed by Greencore and Bakkavor, which said it paved the way for the deal to complete in early 2026.
Greencore chief executive Dalton Philips said that as well as preparing for the deal, it will focus on finding the right new owner for the Bristol business, adding that there has been strong interest in the chilled soups and sauces operation.
”Looking further ahead, I’m extremely excited about what’s to come,” he added. ”Working with brilliant colleagues across Greencore and Bakkavor, we’ve got a huge opportunity to create real value – for our customers and consumers, our colleagues and our shareholders.
“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.”
