Supermarket sandwich maker Greencore鈥檚 拢1.2bn takeover deal for rival Bakkavor is being scrutinised by the 海角视频鈥檚 competition watchdog.
The Competition and Markets Authority (CMA) said it was looking at possible competition concerns about the takeover, which will create a food-to-go giant with around 30,500 staff.
Greencore is headquartered in Dublin, while London-based Bakkavor has sites across the 海角视频 including in Somerset, Wiltshire, Aston in the West Midlands, Crewe in Cheshire, Barton in West Lancashire, and across the East of England and the South East.
The CMA is launching a consultation on the tie-up and inviting interested parties to comment by July 22 ahead of any potential investigation.
鈥淭he CMA is issuing this preliminary 鈥榠nvitation to comment鈥 to allow interested parties to submit to the CMA any initial views on the impact that the transaction could have on competition in the 海角视频,鈥 the CMA said.
鈥淭he CMA has not yet launched its formal investigation into this transaction. This invitation to comment is the first part of the CMA鈥檚 information-gathering process.鈥
The tie-up, structured as a reverse takeover, was agreed in May and will form a combined food group with annual sales of about 拢4bn which supplies many of the 海角视频鈥檚 biggest supermarkets and retailers.
Greencore is a prepared food specialist, which supplies all major 海角视频 supermarkets, as well as the likes of Marks & Spencer.
It has its 海角视频 head office in Worksop and 16 factories across the country, as well as 17 distribution centres. The group supplies nearly 750 million food-to-go items each year and employs about 13,300 staff.
Bakkavor employs around 17,200 staff across 40 sites in the 海角视频, US and China, with about 20 factories in the 海角视频.
It makes around 3,100 different freshly prepared food products, including meals, salads, desserts, dips, sauces, sandwiches, and pizza and bread products.
The deal saw the groups warn in May over job cuts and factory closures as part of aims to save at least 拢80m in costs a year after the tie-up, which sparked trade union concerns.
The firms plan to strip out duplicate headquarters and back office operations, such as administration and support, while they said around 5% of the cost savings would come from reducing combined manufacturing sites, impacting some factory workers.
They estimated that up to around 5% of the total combined workforce could be cut.
However, the firms said they do not expect 鈥渕aterial鈥 redundancies as many of the role cuts will come from not replacing staff as they leave, not filling outstanding vacancies and pausing some hiring plans.
Greencore shareholders will own around 56% of the combined group and Bakkavor the remaining 44% stake following the takeover, which is expected to complete in early 2026 if approved by regulators and shareholders.
The deal comes after Bakkavor had rejected two previous approaches from Greencore.
