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The Competition and Markets Authority (CMA) is proposing to accept remedies offered by Greencore with regards to its proposed acquisition of fellow food group Bakkavor, bringing the deal closer to completion.

The proposed £1.2 billion deal – which would bring two major convenience food manufacturers under the same ownership – faced a preliminary assessment by the CMA, with the first inquiry launched this summer.

The inquiry aimed to assess whether the merger could lead to a substantial lessening of competition in any market for goods or services in the UK.

Last month, the CMA revealed the findings of its Phase 1 investigation, stating that the merger could significantly reduce competition in the supply of own-label chilled sauces, such as pasta and stir-fry sauces. It would position the combined entity as one of the largest suppliers in the UK market.

To resolve the CMA’s concerns, the businesses offered remedies – specifically, Greencore offered to sell its only chilled sauce and soups manufacturing plant in Bristol, UK.

In a statement released today (7 November 2025), the CMA said it believes this could resolve its competition concerns. It will now consult on the composition of the package and the potential deal, but has proposed to accept the remedies.

Joel Bamford, executive director of mergers at the CMA, said: “The cost of our weekly shop matters to us all, so we must take decisions that ensure there is effective competition helping to keep product prices as low as possible on supermarket shelves. Our assessment found Greencore’s deal to buy Bakkavor could raise prices at the till.”

Bamford added: “Following close engagement with Greencore and Bakkavor we’ve secured remedies which we believe have the potential to address our competition concerns – so we have accepted the remedies in principle today and will now work to towards a final resolution”.

Greencore is a major manufacturer, supplier and distributor of convenience food in the UK, while Bakkavor is a multinational producer and supplier of fresh prepared foods across the UK, Ireland and the US. Both businesses sell their products to retailers such as Tesco, Marks & Spencer, Sainsbury’s, Waitrose and Asda.

The CMA noted that the only other substantial competitors in the chilled sauces space are 2 Sisters Food Group and Billington Foods, both of which are perceived as weaker rivals.

In the Italian markets for chilled ready meals and salads, the CMA cleared the merger last month, citing sufficient competition dynamics in those categories.

Following today’s update, the transaction is likely to complete in early 2026, following formal acceptance of the remedies and full regulatory clearance. The deal will create a leading player in the market, with combined revenues nearing £4 billion.