Greencore faces CMA scrutiny over Bakkavor acquisition

The UK’s Competition and Markets Authority (CMA) has initiated an inquiry into Greencore Group’s £1.2 billion acquisition of Bakkavor Group to examine its impact on competition within the food-to-go and chilled prepared meals sectors. The inquiry, which opened on 8 July 2025, aims to assess whether this proposed merger might lead to a substantial reduction in competition in the UK food sector. Interested parties are invited to submit comments until 22 July 2025. Despite regulatory concerns, Bakkavor shareholders overwhelmingly supported the deal, with 99.98% voting in favor. The acquisition, agreed upon in May after a series of negotiations, will unite Greencore’s prowess in the food-to-go category with Bakkavor’s strengths in ready meals and fresh prepared foods. The merger aims to create one of the UK's largest chilled food manufacturers, with revenues nearing £4 billion and a workforce of approximately 30,500. Greencore’s initial offer, made in February 2025, was revised and accepted in April, valuing Bakkavor shares at approximately 200p. The regulatory review, part of an initial CMA scrutiny, underscores the consolidation's potential repercussions on food supply chains, especially in retail sectors. The CMA is currently determining whether to escalate its review to a formal Phase 1 investigation, seeking input from industry stakeholders.