The UK's Competition and Markets Authority (CMA) has expressed concerns about the merger between Greencore and Bakkavor, two private label food giants, believing the deal could substantially reduce competition in the private label chilled sauces market. In its Phase 1 decision, however, the CMA clarified that no similar risks arise in the chilled Italian ready meals or packaged salads segments, where the presence of other established suppliers such as Oscar Mayer, Samworth Brothers, 2 Sisters, and Pilgrim's Pride maintains sufficient competition.
The regulator has given the two companies until November 3 to propose remedies to mitigate the issues identified in the sauces sector, thus avoiding a more in-depth and potentially more costly "Phase 2" investigation. According to the CMA, the main competitors in the UK sauces market—2 Sisters Food Group and Billington Foods—are considered "material" but weaker than the two companies merging.
In a joint statement, Greencore and Bakkavor stated that they intend to work “constructively” with the regulator to resolve the issues raised, confirming their goal of completing the transaction by early 2026. Dalton Philips, CEO of Greencore, called the process “constructive” and emphasized that the decision “confirms the highly complementary nature of our businesses and product portfolios, spanning ‘food for now’ and ‘food for later’.”
Bakkavor shareholders have already approved the merger, which will create a private label giant with approximately £4 billion ($5,3 billion) in annual revenue. Greencore's board of directors has also given the green light. Mike Edwards, CEO of Bakkavor, commented: "The CMA's positive guidance is an important step, allowing us to work quickly toward closing the transaction in early 2026."
The deal, tentatively announced in April and finalized in May after two previous offers were rejected, involves a cash and stock payment. However, the employment issue remains unresolved: Greencore estimates that up to 5% of the total workforce—approximately 1.500 people—could be affected by staff reductions due to office and plant rationalizations. With the merger, Bakkavor will bring pizzas, breads, desserts, and chilled sauces, expanding Greencore's current portfolio, which includes sushi, snacks, quiches, soups, gravies, pickles, and Yorkshire puddings. Both companies compete with industrial brands in the ready-meals segment and supply major British chains with food-to-go products and packaged salads.
