Greencore Group PLC said Tuesday it has agreed to offload its chilled soups and sauces manufacturing site—an asset at the heart of regulators’ antitrust concerns—as the Dublin-based food giant seeks clearance for its £1.2 billion ($1.6 billion) takeover of Bakkavor Group PLC.
A Strategic Sale to Satisfy the Watchdog
Greencore, a FTSE 250-listed sandwich maker, confirmed that its Bristol production site will be sold to Compleat Food Group (Holdings) Ltd., a fast-growing player formed through the merger of Addo Food Group and Winterbotham Darby and backed by French private equity firm PAI Partners.
The move is positioned as Greencore’s proposed remedy to the Phase 2 probe launched by the Competition and Markets Authority, which has been examining whether the Bakkavor deal could weaken competition in the already tight market for fresh prepared foods.
CMA Says Remedy “Likely Acceptable,” but Final Decision Still Ahead
Greencore said the site disposal remains contingent on formal CMA approval following a statutory public consultation. The regulator acknowledged the proposal Tuesday, calling it an appropriate remedy and indicating it is “likely to approve it” by Dec. 3, pending feedback from third parties.
The CMA had already warned in November that the merger—without concessions—could choke competition in the supply of private-label chilled sauces, potentially inflating prices and lowering quality for millions of U.K. shoppers.
Joel Bamford, the CMA’s executive director of mergers, underscored the stakes: “The cost of our weekly shop matters to us all, so we must take decisions that ensure there is effective competition.”
