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The proposed £1.2 billion ($1.61 billion) merger between convenience food manufacturers Greencore Group and Bakkavor Group is under scrutiny by the UK’s Competition and Markets Authority (CMA), which has raised concerns regarding potential anti-competitive effects in the chilled sauces market.

In a preliminary assessment, the CMA indicated that the merger could significantly reduce competition in the supply of own-label chilled sauces, positioning the combined entity as one of the largest suppliers in the UK.

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

Despite these concerns, the CMA has cleared the merger in the Italian markets for chilled ready meals and salads, citing sufficient competitive dynamics in those sectors.

This partial clearance highlights the complexities of market evaluations in the food industry, where regional competition can vary significantly.

Greencore's CEO, Dalton Philips, said: "The CMA process has been constructive and the Phase 1 decision is a welcome one, confirming our view of the highly complementary nature of our businesses and product portfolios across 'food for now' and 'food for later'".

He continued: "...we are now working with the CMA and Bakkavor for the benefit of all our stakeholders to complete the Bakkavor transaction early next year. I’m genuinely excited about what 2026 has in store as we bring these two great businesses together to create a true UK national food champion to deliver high-quality, innovative food to customers and consumers."

Mike Edwards, CEO of Bakkavor, added: “Today’s positive news from the CMA is a significant step forward in the process, providing welcome clarity which means we can collectively work at pace and stay on track to complete the transaction in early 2026".

Both companies have until November 3 to propose remedies to address the CMA's competition concerns, with the aim of proceeding with the transaction in early 2026.

The CMA's intervention reflects a broader regulatory environment in the UK that is increasingly vigilant about maintaining competitive markets, particularly in essential consumer goods like food.