Convenience food producer Greencore has received approval in principle from the UK Competition and Markets Authority (CMA) for its proposed remedy to move forward with the acquisition of rival company Bakkavor. The deal is now expected to be finalised in early 2026.
To address competition concerns raised by the regulator, Greencore has agreed to sell its Bristol chilled soups and sauces manufacturing site. The company said it is currently in discussions with several potential buyers. The Bristol facility and its related operations generated around £47 million in revenue during the year ending September 2025, representing roughly 1% of the combined group’s total income.
Once completed, the merger will create one of the UK’s largest convenience food businesses. The deal comes at a time when British companies are increasingly attracting interest from private equity firms and strategic investors, driven by lower market valuations.
Greencore is a major supplier of convenience food to all leading UK supermarkets and is the nation’s biggest producer of pre-packed sandwiches. Bakkavor, on the other hand, manufactures around 3,500 freshly prepared food items including ready meals, salads, desserts, sauces, sandwiches, and bakery products. Its retail partners include Tesco, Marks & Spencer, and Waitrose.
Bakkavor has been restructuring its operations across the UK, China, and the United States to navigate rising production costs, lower consumer demand, and reduced sales volumes.
Dalton Philips, CEO of Greencore, welcomed the regulator’s response, saying the company can now move forward with completing the acquisition. “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,” he said.
He added that Greencore’s focus is now on securing the right buyer for its Bristol business. “It’s been great to see such strong interest in what is a fantastic chilled soups and sauces operation, and I’m highly confident we’ll get a good outcome here,” Philips said.
Looking ahead, Philips said both companies are already collaborating closely on integration plans and are ready to “hit the ground running” once the acquisition is finalised.
Bakkavor CEO Mike Edwards said preparations for integration are well advanced. “Together, the combined group’s scale will enable us to create more opportunities for colleagues, deliver even better quality, service, and innovation for our customers, and generate value for shareholders,” he said.
The merger still requires final approval from the CMA and court confirmation of Greencore’s proposed commitments before it can proceed.
