Greencore-Bakkavor merger: UK competition watchdog raises concerns over chilled sauces

The UK’s Competition and Markets Authority (CMA) has found that Greencore Group’s acquisition of Bakkavor Group raises competition concerns, and a phase two probe now needs to be conducted.

In concluding phase one of its investigation, the CMA says there is “a realistic prospect of a substantial lessening of competition” in the supply of own-label chilled sauces in the UK as a result of “horizontal unilateral effects.”

The regulator has raised competition concerns in chilled sauces, but not for ready meals and salads.

If the merger were to proceed, the combined entity would become one of Britain’s largest chilled sauces suppliers, with only two other competitors, 2 Sisters Food Group and Billington Foods.

Own-label sauces

Earlier this year, Greencore, a food manufacturer, supplier, and distributor, agreed to acquire Bakkavor — a multinational manufacturer and supplier of fresh prepared foods across the UK, Ireland, and the US — through a cash and share offer valued at £1.2 billion (US$1.6 billion). 

The proposed merger in the chilled sauces sector was initially announced in April, but the CMA says it will now be referred for an in-depth, phase two investigation, unless the companies “offer an acceptable undertaking to address these competition concerns.”

The products the CMA looked at in detail included own-label chilled sauces, Italian chilled ready meals, and own-label salads. 

The businesses expect to complete the transaction by early 2026, but must address the CMA’s concerns by November 3, 2025. 

They point out that the phase one CMA decision does not raise competition concerns in most areas reviewed. 

Greencore CEO Dalton Philips says: “The CMA process has been constructive and the phase one decision is a welcome one, confirming our view of the highly complementary nature of our businesses and product portfolios.”