The UK competition watchdog has said the £2.1 billion acquisition of Bakkavor by Greencore is likely to ‘substantially’ lessen competition in the supply of own-label chilled sauces in the UK.
The investigation by the Competition Markets Authority (CMA) was launched in July, with the body now having completed phase one. The investigation looked at own label chilled sauces, own label Italian chilled ready meals, and own label salads.
The CMA said it believes there is competition issues in the area of own-label chilled sauces as there is limited market competition from other suppliers in the market 2 Sisters Food Group (2SFG) and Billington Foods.
However, the CMA raised no concerns over other own-label products with the acquisition.
The CMA said that for Italian chilled ready meals, while the evidence indicates that both companies have high combined market share, Bakkavor’s share is primarily a result of a single customer. It also found that when they have competed for a few recent opportunities Bakkavor has had “limited success”, suggesting it does not pose a strong constraint on Greencore or other suppliers.
The new combined company would also be constrained by established suppliers, such as Oscar Mayer and Samworth Brothers as well as other suppliers, such as 2SFG and Pilgrim’s Pride who currently focus on other ready meal cuisines.
For salads, despite high shares, the evidence indicates there is currently limited competitive interaction between the two companies and competition would be constrained by other suppliers Samworth, Avondale Foods and Natures Way Foods, the CMA said.
Greencore and Bakkavor have until 3 November 2025 to address concerns raised by the CMA over its chilled sauces.
Bakkavor and Greencore bosses unfazed
Despite concern raised by the CMA, Greencore and Bakkavor have welcomed the announcement as most areas reviewed did not flag any concerns. Specifically, the CMA agreed with Greencore and Bakkavor that the transaction does not raise any competition concerns in relation to approximately 99% of the revenues of the combined group.
“The CMA process has been constructive and the Phase 1 decision is a welcome one,” Dalton Philips, CEO of Greencore said.
Mike Edwards, CEO of Bakkavor agreed the news is “a significant step forward in the process”, and offers “clarity”, meaning the companies can “work at pace and stay on track” to complete the transition in early 2026.
If no remedy can be given, the CMA will proceed to an in-depth phase 2 investigation.
Greencore is a food manufacturer, supplier and distributor whose core business is dedicated to the production and supply of convenience food in the UK. Bakkavor is a multinational manufacturer and supplier of fresh prepared foods across the UK, Ireland and United States.
