UK Antitrust Flags Concerns Over $1.6 Billion Greencore-Bakkavor Merger in Chilled Sauces Sector

UK Antitrust Watchdog Flags Concerns Over Greencore-Bakkavor Merger in Chilled Sauces Market

The UK Competition and Markets Authority (CMA) has raised serious antitrust concerns over the proposed £1.2 billion ($1.6 billion) merger between food manufacturing giants Greencore Group and Bakkavor, warning that the deal could harm competition in Britain’s chilled sauces market.

According to the CMA’s preliminary report released on 27 October 2025, the merger could significantly reduce competition in the own-label chilled sauces segment, where both companies are among the largest suppliers to major UK supermarkets such as Tesco, Sainsbury’s, and Asda.

The regulator said that if the merger proceeds without safeguards, it could lead to higher prices, fewer choices, and reduced innovation for retailers and consumers. The CMA noted that after the merger, only a few competitors—like 2 Sisters Food Group and Billington Foods—would remain active in this product category, which could make the market less competitive.

However, the CMA clarified that the merger is unlikely to affect competition in other categories, such as chilled Italian ready meals and salads, where several other manufacturers continue to operate.

Greencore CEO Dalton Philips stated that the company intends to fully cooperate with the CMA and remains confident that the transaction will ultimately be approved. “We believe this merger will strengthen supply chains, reduce costs, and deliver better value and quality for customers,” Philips said in a statement.

Both companies have until 3 November 2025 to submit possible remedies or proposals addressing the CMA’s concerns. If the watchdog is not satisfied with the proposed solutions, it could block the merger or impose additional conditions to preserve market competition.

Industry analysts say the merger could transform the UK’s chilled food sector by creating a more efficient and technology-driven supplier network. However, they also warn that reduced competition could impact consumer prices and limit product variety if strong regulatory checks are not enforced.

Experts further suggest that the case is a major test of the UK’s post-Brexit competition framework, demonstrating how regulators are taking a tougher stance against consolidation in essential consumer markets.

If approved, the Greencore-Bakkavor merger would mark one of the largest consolidations in Britain’s chilled food industry in recent years, reshaping the structure of the ready-meal and sauces supply chain.