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.”

Clearing the Path for a 2026 Deal Completion

Greencore said offloading the soups and sauces site paves the way for completing the Bakkavor acquisition in early 2026, assuming the CMA gives its blessing. The Bristol business generated £47 million in sales in the year to September, equivalent to about 1% of the combined Greencore–Bakkavor group’s projected revenue.

Greencore supplies chilled and frozen foods to customers in Britain and the U.S., while Bakkavor—focused on fresh prepared foods—operates across the U.K., Ireland, and the U.S.

The Irish company’s cash-and-stock proposal, made in May, values each Bakkavor share at 200 pence.

A Deal Still Waiting on the Courts

Even with CMA approval, the acquisition must still be sanctioned by the High Court before it can proceed.

The CMA first launched a phase-one probe in September but escalated to phase two after finding that the merger could “substantially lessen competition,” especially in the sauce category—covering staples like pasta and stir-fry sauces.

As the clock ticks toward December, Greencore’s move to sell the Bristol site now stands as the key piece in its bid to bring the long-anticipated takeover across the finish line.