Greencore Bakkavor Merger Faces CMA Probe Over Chilled Sauces Market

Greencore’s £1.2bn proposed acquisition of Bakkavor, two of the United Kingdom’s foremost suppliers of convenience foods to major supermarkets including Tesco, Marks & Spencer, Sainsbury’s, Waitrose and Asda, has drawn the scrutiny of the Competition and Markets Authority (CMA). The deal, announced in April, aims to create a powerhouse in the UK convenience food sector with a combined revenue of £4bn. Across the industry, this move is viewed as a pivotal moment that could reshape the landscape for ready-made food products in the UK retail sector.

The CMA recently completed its phase 1 investigation, expressing concern that the merger could substantially lessen competition in the market for supermarket own-label chilled sauces. Although chilled sauces represent just 1% of the combined group’s revenue—both firms supply pasta sauces to leading UK retailers—regulators have spotlighted this sector as posing potential risks to consumer choice and pricing. The watchdog is now giving both companies until 3 November to propose measures to address these competition concerns, warning that failure to do so will trigger a more in-depth phase 2 probe.

Despite the regulator’s focus on chilled sauces, the majority of the proposed merged business has not raised alarms, with the CMA noting no significant risk of dominance in Italian chilled ready meals or own-label salads. Greencore and Bakkavor have both welcomed the clarity provided by the phase 1 review, stating that the process has been constructive and expressing confidence in the transaction closing as planned in early 2026. Greencore’s chief executive Dalton Philips praised the efforts of both teams, indicating that discussions with the CMA are continuing in good faith for the benefit of all stakeholders.

Industry analysts point out that the chilled sauces segment is a small portion of the merged entity’s revenue base. Nonetheless, regulatory scrutiny comes as no surprise, given the scale of the transaction and the prominence of own-label products within the supermarket sector. Market watchers will be keen to see how both companies respond to the CMA’s concerns as the 3 November deadline approaches.

Greencore, headquartered in Dublin and listed in London, employs approximately 13,300 staff across 14 UK factories. Bakkavor, established by Icelandic brothers Lýdur and Ágúst Gudmundsson, now operates from London with a workforce of about 14,900 spread over more than 30 sites in the UK and US. With regulatory and operational hurdles ahead, all eyes remain on how the proposed merger will unfold in the coming months.