The UK’s competition watchdog has confirmed it will investigate the planned takeover of chilled food giant Bakkavor by rival Greencore. The Competition and Markets Authority (CMA) announced this week that it has launched a Phase 1 review of the deal, inviting comments from industry stakeholders until 22 July.
Greencore, one of the UK’s largest producers of sandwiches and convenience meals, first tabled a bid for Bakkavor earlier this year in a move that would combine two of the biggest names in ready-to-eat foods. The proposed £1.2 billion deal has raised eyebrows across the sector, with analysts predicting it could reshape Britain’s chilled food landscape.
While both companies say they expect the transaction to strengthen supply chains and expand product lines, the CMA is concerned the merger could reduce competition in key categories such as ready meals, salads and food-to-go. Announcing the inquiry, the regulator said: “The CMA is considering whether this deal could result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.” If the initial review uncovers significant overlaps, the watchdog could escalate the process to an in-depth Phase 2 investigation – a step that could delay or even block the tie-up altogether.
Greencore and Bakkavor say they remain confident of gaining approval but have agreed that any major remedies demanded by regulators would need mutual consent to proceed. The CMA’s initial findings are expected later this summer.
The inquiry comes as consolidation continues to reshape the UK food manufacturing sector, with scale and efficiency increasingly seen as vital to navigating inflation, labour shortages and shifting consumer habits.
