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Greencore and Bakkavor Extend Talks on £1.2B Food Merger

Food and Beverages

Business Honor
14 April, 2025

Extended deadline gives firms time to finalize buyout terms and complete the due diligence process.

Bakkavor, a UK-based company, produces ready meals and sweets for Tesco and other clients. More than 80% of the company's £2.29 billion in core sales in 2024 came from the UK, although it also operates factories and conducts business in the US and China.

Greencore, a Dublin-based company, sources chilled, frozen, and ambient food from 16 UK facilities. Major UK grocery stores like Tesco, Sainsbury's, and Asda are among the company's clients. The group's revenue for the most recent full fiscal year was £1.81 billion.

According to a statement released on April 2, Greencore was informed by Bakkavor's board that if its suitor expressed a solid desire to submit a bid, the company would be unanimously decided to recommend the updated offer to its investors. The offer was liable on both firms performing due diligence; however, Greencore had until 17:00 UK time today (April 11) to declare whether it would submit a solid proposal or not.

Bakkavor declared today that the UK Panel on Takeovers and Mergers had granted their request for an extension of that deadline to May 9. Bakkavor stated that the extension would provide additional time to continue discussions on the remaining terms and conditions of the potential offer, including the completion of mutual confirmatory due diligence that satisfies both Greencore and Bakkavor. According to the proposed deal, Greencore would hold a 56% stake in the combined entity, with the remaining shares owned by Bakkavor shareholders. Bakkavor added that Greencore gave its approval for the announcement to be made.

Greencore stated last week that the proposed merger would establish a "leading" convenience food company in the UK with combined annual revenue of almost £4 billion. Competition regulators would still need to approve a deal. After ten years in the US market, Greencore announced its departure in 2018, selling its operations to a Hearthside Food Solutions affiliate for $1.07 billion.