Greencore Soothes Cma Concerns Over Bakkavor Merger With Plant Sale Plan

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Greencore has soothed UK title concerns complete nan takeover of convenience nutrient adjacent Bakkavor pinch a connection to waste a soups and sauces plant.

The deal, announced successful March, now moves a measurement person toward being completed connected target early adjacent twelvemonth aft nan Competition and Markets Authority (CMA) provisionally approved nan remedy.

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In a associated connection pinch Bakkavor coming (7 November), Greencore said it is successful talks pinch “prospective” buyers for its chilled soups and sauces manufacturing installation successful nan English metropolis of Bristol.

Dublin-headquartered Greencore, which for illustration UK-based Bakkavor makes food-to-go and convenience products supplied to awesome supermarkets, said nan Bristol site, on pinch “related business”, generates yearly gross of astir £47m ($61.5m).

As portion of its Phase-one investigation into nan merger, nan CMA flagged successful October a potential title conflict successful own-label soups and sauces, while it did not person akin concerns for fresh meals and salads.

Today, nan regulator acknowledged nan Bristol installation is nan only 1 Greencore operates successful nan class arsenic nan CMA said it is “proposing to judge remedies offered”.

Joel Bamford, nan executive head for mergers astatine nan CMA, said successful a statement: “Following adjacent engagement pinch Greencore and Bakkavor, we’ve secured remedies which we judge person nan imaginable to reside our title concerns – truthful we person accepted nan remedies successful rule coming and will now activity towards a last resolution.”

The CMA was much circumstantial connected wherever its erstwhile concerns laic successful chilled sauces, citing areas specified arsenic pasta and stir-fry sauces, arsenic it noted successful nan wider strategy of things that some businesses proviso nan likes of Tesco, Sainsbury’s Asda, Waitrose and Marks & Spencer.

Meanwhile, London-listed Greencore added nan £47m successful gross generated by nan Bristol works accounted for astir 1% of income successful nan twelvemonth to 26 September.

Those full-year accounts are not owed until nan 18 November. However, successful a trading update issued In October, Greencore said it expected to present £1.95bn successful gross for fiscal 2025, on pinch £125m successful adjusted operating profit.

Bakkavor, which is besides listed successful nan UK capital, near its adjusted operating profit outlook unchanged successful September astatine £120-126m for fiscal 2025 but did not supply a gross update. Sales successful nan erstwhile twelvemonth were £2.3bn.

In today’s statement, Greencore CEO Dalton Philips said: “The CMA’s acceptance successful rule of nan remedy is really bully news and intends we tin now look to complete nan Bakkavor woody successful early 2026.

“In parallel, our attraction is connected uncovering nan correct caller proprietor for our Bristol business.”

Philips’ counterpart astatine Bakkavor, Mike Edwards, added nan latest improvement from nan CMA “gives america moreover greater certainty that we will bring these 2 superb businesses together”.

Greencore shareholders would ain astir 59.8% of nan caller company, pinch Bakkavor investors holding nan remainder.