CMA Proposes Remedies for Greencore’s Purchase of Bakkavor
Greencore’s planned acquisition of Bakkavor aims to form one of the UK’s largest convenience food companies.
About the Companies
- Greencore: A major UK food manufacturer, supplier, and distributor focused on convenience food.
- Bakkavor: A multinational supplier of fresh prepared foods operating in the UK, Ireland, and the US.
Market Impact and CMA Investigation
Both companies supply supermarkets and grocery chains including Tesco, Marks & Spencer, Sainsbury’s, Waitrose, and Asda.
The Competition and Markets Authority (CMA) conducted a Phase 1 investigation into the deal.
The CMA found the deal "could result in a substantial lessening of competition in the supply of own-label chilled sauces – such as pasta and stir-fry sauces," potentially leading to higher prices or lower product quality for UK consumers.
Following this, the CMA is proposing to accept remedies offered by Greencore to address these concerns.
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Author's summary: The CMA aims to prevent reduced competition and protect consumers by proposing conditions on Greencore’s acquisition of Bakkavor, major UK convenience food suppliers.