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The Competition and Markets Authority (CMA) has initiated an inquiry into the proposed acquisition of Bakkavor Group by Greencore Group, a significant move in the UK food manufacturing sector. The investigation aims to assess the potential impact of the merger on competition within the market.

On 15 May, Greencore announced its recommended offer to acquire Bakkavor. The deal, valued at approximately £1.2 billion, positions the newly formed entity as a leading player with combined revenues nearing £4 billion.

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.

The CMA's inquiry was formally opened today (8 July 2025), with an invitation for interested parties to submit comments by July 22, 2025. This preliminary phase seeks to determine whether the merger poses a risk of creating a relevant merger situation under the provisions of the Enterprise Act 2002. Specifically, the CMA will evaluate if the acquisition could lead to a substantial lessening of competition in any market for goods or services in the UK.

The CMA has not yet launched a formal investigation but is gathering initial views on the transaction's implications for market dynamics. Stakeholders are encouraged to provide written representations regarding any competition concerns they may have about the merger.

Greencore, a prominent player in the convenience food sector, and Bakkavor, known for its fresh prepared foods, represent significant entities within the UK's food supply chain. The merger could reshape competitive landscapes, particularly in the ready-to-eat and chilled food markets, which have seen increasing demand amid changing consumer preferences.

The CMA's decision to investigate reflects ongoing scrutiny of consolidation in the food industry, where mergers can lead to concerns about reduced competition and higher prices for consumers. As the inquiry progresses, the CMA will assess how the merger aligns with market trends and the potential implications for suppliers and retailers alike.