The Competition and Markets Authority (CMA) has raised concerns over the proposed £1.2 billion ($1.61 billion) merger between Greencore (LSE:GNC) and Bakkavor Group PLC (LSE:BAKK), warning that the deal could reduce competition in the supply of own-label chilled sauces in the UK.
Both companies are major players in the country’s ready-made food sector, supplying retailer-branded products to supermarkets and food service providers. The regulator specifically pointed to potential competitive harm in the retailer own-brand chilled sauces segment, where Greencore and Bakkavor are currently direct competitors.
The CMA’s concerns could lead to a deeper Phase 2 investigation if the companies do not propose suitable remedies to address the competition issues. The outcome of this review could have significant implications for consolidation within the UK food manufacturing industry.
More about Greencore and Bakkavor
Greencore is a leading UK convenience food manufacturer specializing in ready-made sandwiches, salads, chilled prepared meals, and sauces. Bakkavor Group PLC is a major international fresh prepared food producer with operations in the UK, U.S., and China. Both companies supply many of the country’s largest supermarket chains with own-label products.
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