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British food manufacturer Bakkavor has rejected two takeover bids from Ireland-headquartered convenience food producer, Greencore.

Greencore made its first proposal on 25 February 2025, which Bakkavor’s board rejected two days later. Following this, Greencore then approached the food group with a revised proposal on 7 March, implying a total equity value of £1.14 billion for Bakkavor.

Bakkavor’s board of directors evaluated the proposal with the support of financial advisors and concluded that it ‘significantly undervalued’ the company and its future prospects. The board unanimously rejected the proposal on 10 March and shared its decision in a responding statement filed with the London Stock Exchange on 14 March.

The merger proposal, which Greencore believes to offer a ‘highly compelling value creation opportunity’ for both companies’ shareholders, would have created an enlarged UK convenience food business with a combined revenue of £4 billion.

Bakkavor operates internationally, primarily in the UK with a growing presence in the US and China. Headquartered in London, the group has over 20,000 employees in total and supplies fresh convenience food to major grocery retailers including Tesco, Marks & Spencer, Sainsbury’s and Waitrose. In 2024, it reported revenue growth of 4%.

Under the revised bid, Greencore shareholders would own approximately 59.8% and Bakkavor shareholders would own approximately 40.2% of the enlarged group.

In a statement, Greencore said the combined entity would benefit from a diverse product offering, strong commercial relationships and market-leading capabilities across the UK convenience food landscape. It highlighted potential for ‘substantial’ synergies resulting from the merger to further enhance growth for the companies’ shareholders.

In accordance with UK takeover laws, Greencore is now required to either announce a firm intention to make an offer for the company, or announce that it does not intend to make an offer, by 5pm GMT on 11 April 2025.