CMA launches inquiry into Greencore’s £1.2bn Bakkavor acquisition

The UK’s Competition and Markets Authority (CMA) has launched an inquiry into Greencore Group’s £1.2 billion acquisition of Bakkavor Group, raising concerns about potential harm to market competition in the food-to-go and chilled prepared meals sectors.

The inquiry, formally opened today (8 July 2025), will assess whether the merger may lead to a “substantial lessening of competition” in the UK food sector.

The CMA is now inviting comments from interested parties until 22 July 2025 as part of its initial review.

In an official statement, the authority said:

The CMA is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”

The news comes just a day after Bakkavor shareholders overwhelmingly backed the deal, with 99.98 percent voting in favour.

Agreeing the finer details

The proposed deal, finalised in May, would create one of the UK’s largest chilled food manufacturers, bringing together Greencore’s food-to-go dominance with Bakkavor’s established position in ready meals and fresh prepared food. The combined company will drive revenues close to £4 billion and will employ around 30,500 people.

Greencore’s pursuit of Bakkavor began with an initial bid on 25 February 2025. Following several rounds of negotiations and multiple rejections, Greencore submitted a revised offer that Bakkavor accepted in April. The deal included 85p per Bakkavor share plus 0.604 new Greencore shares, valuing each Bakkavor share at approximately 200p.

Under the terms of the merger, Greencore shareholders will hold around 56 percent of the combined company, with Bakkavor shareholders owning the remaining 44 percent.

Although the CMA has not yet launched a formal Phase 1 investigation, this initial step signals regulatory interest in how such a consolidation might reshape competition across food supply chains, particularly in supermarket and convenience retail channels.

The CMA is urging industry stakeholders and food sector professionals to submit written representations on the deal’s potential impact. Its findings from this preliminary review will decide whether to proceed with a deeper investigation.