CMA Phase 1 investigation flags chilled sauces risk in Greencore-Bakkavor deal

The UK’s Competition and Markets Authority (CMA) has warned, following its Phase 1 investigation, that Greencore’s proposed £1.2 billion acquisition of Bakkavor could reduce competition in the supply of chilled supermarket sauces.

The CMA said its Phase 1 investigation, launched on 1 September, found the deal raised no issues across most product areas. However, it concluded that the acquisition may lead to a “substantial lessening of competition” in own-label chilled sauces.

The watchdog noted that only Two Sisters Food Group and Billington Foods would provide “material” competition but stressed both rivals were “weaker” than the merging businesses.

The firms have until 3 November to address the CMA’s concerns or face a deeper Phase 2 probe.

Greencore and Bakkavor response

Despite the hurdle, both Greencore and Bakkavor emphasised that the CMA’s Phase 1 investigation found 99 percent of the combined group’s revenues raised no competition concerns.

Dalton Philips, CEO of Greencore, said: “The CMA process has been constructive and the Phase 1 decision is a welcome one, confirming our view of the highly complementary nature of our businesses and product portfolios across “food for now” and “food for later”. I am really grateful to my colleagues at Greencore and Bakkavor in successfully getting us to this point and we are now working with the CMA and Bakkavor for the benefit of all our stakeholders to complete the Bakkavor transaction early next year. 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.”

Mike Edwards, CEO of Bakkavor, added: “Today’s positive news from the CMA is a significant step forward in the process, providing welcome clarity which means we can collectively work at pace and stay on track to complete the transaction in early 2026. Bakkavor is in great shape and we remain excited about joining the Greencore business and unlocking all the associated benefits we have highlighted for colleagues, customers and shareholders. I would like to thank everyone in Bakkavor and Greencore who has worked so hard in getting us to this advanced stage in the process.”

The CMA’s decision keeps the acquisition on track for completion in early 2026, but the outcome depends on how the companies address competition risks in chilled supermarket sauces.