The Competition and Markets Authority (CMA) has opened an investigation into the proposed merger of food manufacturers Greencore and Bakkavor.
Convenience manufacturer Greencore previously agreed the terms of a recommended acquisition of Bakkavor Group Plc for around £1.2 billion to create a UK convenience business with a combined revenue of around £4 billion and around 30,500 employees.
The CMA said it was considering whether the transaction would result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation “may be expected to result in a substantial lessening of competition within any market or markets in the UK” for goods and services.
The Authority issued a preliminary invitation to comment to allow interest parties to submit any initial views on the impact that the transaction could have on competition in the UK.
Dalton Philips, CEO of Greencore, said: “The combined group will be able to invest more in innovation and product development ensuring we can provide the consumer with greater food choices at more points in the day, bringing together Greencore’s ‘food for now’ expertise with Bakkavor’s ‘food for later’ portfolio.
“We look forward to welcoming Bakkavor’s employees and creating an exciting, combined business for all stakeholders. Bakkavor is the ideal partner for Greencore and we look forward to delivering on the significant growth potential of the enlarged business.”
From 8th July to 22nd July, interested parties can comment on the transaction by sending written responses to greencore.bakkavor@cma.gov.uk.
Bakkavor has been contacted for comment.
