CMA Proposes to Accept Remedies in Supermarket Supplier Deal
Greencore's planned acquisition of rival Bakkavor will create one of the UK's largest convenience food businesses.
Company Profiles
- Greencore Group: A leading UK food manufacturer, supplier, and distributor focused on convenience food production.
- Bakkavor Group: A multinational manufacturer and supplier of fresh prepared foods operating across the UK, Ireland, and the US.
Market Impact
Both companies supply own-label products to major supermarkets and grocery retailers including Tesco, Marks & Spencer, Sainsbury’s, Waitrose, and Asda.
CMA Investigation Findings
The Competition and Markets Authority (CMA) conducted a Phase 1 investigation and found that the deal could substantially lessen competition in the supply of own-label chilled sauces—such as pasta and stir-fry sauces—potentially leading to higher prices and reduced product quality for UK consumers.
The CMA is now proposing to accept remedies offered by the parties involved to address these competition concerns.
Author's summary: The CMA aims to ensure fair competition and protect consumer interests by tentatively approving proposed remedies in the high-stakes Greencore-Bakkavor merger.