Greencore Faces CMA Scrutiny Over Bakkavor Acquisition

Deal News | Jul 08, 2025 | EIN

The Competition & Markets Authority (CMA) has launched a preliminary investigation into Greencore's £1.2 billion acquisition of its rival Bakkavor. The evaluation aims to assess whether this merger will significantly reduce competition in the UK food manufacturing sector. This comes after an overwhelming 99.98% shareholder approval from Bakkavor. Both companies are key suppliers to UK supermarkets, with Greencore focusing on convenience foods and Bakkavor on diverse offerings like soups and ready meals. The anticipated consolidation is set to create a leading British convenience food enterprise with shared revenues of approximately £4 billion. Synergies in manufacturing and distribution are expected, though concerns about potential job losses and factory closures accompany the projected cost savings of £80 million annually. Completion of the acquisition is scheduled for early 2026, contingent on regulatory consent.

Sectors

Food Manufacturing
Regulatory Oversight

Geography

United Kingdom – The investigation by the CMA focuses on the impact of the merger within the UK market, where both companies are significant players.
Ireland – Greencore, the acquiring company, is headquartered in Ireland.

Industry

Food Manufacturing – Both Greencore and Bakkavor operate within the food manufacturing sector, providing convenience foods to supermarkets across the UK.
Regulatory Oversight – Involves the CMA's investigation into potential anti-competitive effects of the business merger.

Financials

£1.2 billion – The purchase price for Greencore's acquisition of Bakkavor.
£4 billion – The expected combined revenue post-acquisition.
£80 million – Anticipated yearly cost savings from the merger due to identified synergies.

Participants

Name	Role	Type	Description
Greencore	Acquirer	Company	An Ireland-headquartered convenience food manufacturer, aiming to expand through its acquisition of Bakkavor.
Bakkavor	Target	Company	A major UK food manufacturer supplying soups, ready meals, sauces, salads, and pizza.
Competition & Markets Authority (CMA)	Regulatory Body	Government	UK regulator conducting the investigation into the potential anti-competitive effects of the merger.