A UK watchdog has raised concerns about Greencore’s acquisition of rival convenience food manufacturer, Bakkavor, following a review that investigated whether the merger could reduce competition in the supply of prepared foods in UK supermarkets.
The review, which was carried out by the Competition and Markets Authority (CMA), found that the merger “could give rise to a realistic prospect of a substantial lessening of competition (SLC) in the supply of supermarket own-label chilled sauces”
The CMA stated that the merger companies have until November 3, 2025 to rectify these competition concerns, otherwise the merger will undergo “an in-depth phase 2 investigation”.
Review
The merger’s impact on the supply of own-label products such as chilled sauces, Italian chilled ready meals, and salads was examined within the review.
The CMA believes that the Greencore/Bakkavor group will become one of the largest suppliers of chilled sauces, with the two closest competitors, 2 Sisters Food Group and Billington Foods, being described as “weaker” in comparison.
For Italian chilled meals and salads, the CMA noted that it did not find sufficient evidence of a competition risk caused by the merger.
Merger
Greencore and Bakkavor stated that the CMA concluded in its review that the merger “does not raise any competition concerns in relation to approximately 99% of the revenues of the combined group”.
The merger group outlined that they will continue to work with the CMA to address the competition concern in relation to chilled sauces before the deadline next week.
In response to the review, the CEO of Greencore, Dalton Phillips commented: “The CMA process has been constructive and the Phase 1 decision is a welcome one.”
The £1.2 billion merger between the two companies is set to be completed by early 2026.
Phillips added: “I’m genuinely excited about what 2026 has in store as we bring these two great businesses together to create a true UK national food champion to deliver high-quality, innovative food to customers and consumers.”
