Competition watchdog investigates £1.2bn Greencore Bakkavor merger, concerns about market competition

The UK’s Competition and Markets Authority (CMA) is investigating the proposed £1.2bn merger between Greencore and Bakkavor. The focus is on potential competition reduction in food-to-go, ready meals, and prepared food markets. Stakeholders have until 22 July to submit views before the phase one investigation begins.

Greencore directors and Bakkavor shareholders have approved the merger, aiming to create a £4bn revenue private-label business. Job losses of up to 1,525 employees could result from office and factory consolidations. CMA’s main concern is the impact on competition in the market.

Analysts suggest limited overlap in companies’ portfolios reduces competition concerns. The merger could benefit consumers with lower prices but may give the combined entity more leverage for price increases. Bakkavor’s addition of products like pizza and breads complements Greencore’s offerings.

CMA might approve the merger but impose conditions, potentially leading Greencore to abandon the deal. The watchdog is encouraged to be more pro-growth, potentially affecting the likelihood of future deals. Limited product overlap between Bakkavor and Greencore minimizes competition concerns.

Read more at Yahoo Finance: UK competition watchdog looks into Greencore Bakkavor merger