Convenience food producer Greencore said today that the UK competition regulator had accepted in principle its proposed remedy to secure approval for its acquisition of convenience food rival Bakkavor.
The deal is now targeted to complete in early 2026.
The proposed remedy involves Greencore selling its Bristol chilled soups and sauces manufacturing site. Greencore said it is currently engaged with a number of prospective purchasers.
The Bristol site and its related business generated revenues of about £47m in the year ended September 2025, about 1% of the revenues of the combined group.
The deal will create a leading UK convenience food business at a time when UK companies have become increasingly attractive targets for private equity and strategic buyers due to their relatively depressed valuations.
Greencore supplies convenience food to all major supermarkets in Britain and is the biggest pre-packed sandwich maker in the UK.
Bakkavor makes around 3,500 different freshly prepared food products, including meals, salads, desserts, dips, sauces, sandwiches and pizza and bread products.
It has been reshaping its businesses across the UK, China and the US to cope with steep costs, subdued consumer demand and reduced volumes.
Bakkavor's retail customers include Tesco, Marks & Spencer and Waitrose, while Greencore supplies all major UK supermarkets.
The deal still needs final approval from the UK Competition and Markets Authority and the court's approval of Greencore's proposed commitments.
"The CMA's acceptance in principle of the remedy is really good news and means we can now
look to complete the Bakkavor deal in early 2026," Dalton Philips, the CEO of Greencore said.
"In parallel, our focus is on finding the right new owner for our Bristol business. It's been great to
see such strong interest shown in what is a fantastic chilled soups and sauces operation, and I’m
highly confident we’ll get a good outcome here," he said.
"Looking further ahead, I’m extremely excited about what’s to come. 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," he added.
Mike Edwards, CEO of Bakkavor, said the company's integration plans are well progressed, and it will continue to work collaboratively with Greencore to ensure a quick and smooth transition following completion.
"Together, the combined group's scale will enable us to create even more opportunities for colleagues, deliver even better quality, service and innovation for our customers, and generate value for our shareholders," he added.
