Greencore clears final CMA hurdle to seal £1.2bn Bakkavor acquisition

Greencore will complete its £1.2bn acquisition of rival chilled food manufacturer Bakkavor on 16 January 2026 after clearing the final regulatory hurdle with the Competition and Markets Authority (CMA).

The UK competition watchdog confirmed today (17 December 2025) it had accepted Greencore’s agreement to sell its Bristol soups and sauces plant as a sufficient remedy to concerns the deal could reduce competition in the own-label chilled sauces market.

The decision clears the way for Greencore to acquire one of the UK’s largest chilled food suppliers, creating a combined group with expected annual revenues approaching £4bn and supplying major retailers across ready meals, salads, sandwiches, soups and sauces.

The CMA warned in October the acquisition risked a “substantial lessening of competition” in own-label chilled sauces, such as pasta and stir-fry sauces. While its Phase 1 investigation, launched on 1 September, found no issues across most other product areas, chilled sauces emerged as a key area of concern.

In its findings, the watchdog said only Two Sisters Food Group and Billington Foods would provide “material” competition post-acquisition, but stressed both rivals were “weaker” than the parties involved.

Bristol site sale paves way for deal completion

Greencore’s proposed divestment of the Bristol soups and sauces site addressed those concerns. The facility and its related business generated revenues of approximately £47m in the year to 26 September 2025, accounting for around 1 percent of the revenues of the combined Greencore and Bakkavor group.

The Compleat Food Group agreed a legally binding deal with Greencore on 14 November to acquire the Bristol site, subject to CMA approval. With clearance now granted, Greencore has one month to complete the divestment, or two weeks from completion of the Bakkavor acquisition, whichever is earlier.

Until the sale is finalised, Greencore will run the Bristol business independently and maintain its competitive position, workforce structure, assets, and product range and quality. It cannot make any substantive changes to management responsibilities or organisational structures at the site.

The CMA has also barred Greencore from influencing the strategy of the divested business, appointing senior personnel connected to it, or retaining any interest in the operation without prior approval.

Crucially for Greencore, the decision means the acquisition will not proceed to a Phase 2 investigation, removing the final regulatory barrier to one of the most significant deals seen in the UK chilled food sector in recent years.

Timeline of the key remaining milestones for the £1.2bn acquisition.