Watchdog flags concerns over Greencore deal to buy rival food supplier

Greencore’s £1.2bn deal to buy Bakkavor is under scrutiny after the watchdog said the tie-up between Britain’s biggest sandwich maker and a rival could harm competition.

- Lauren Almeida

Greencore struck a deal in April to buy Bakkavor, which supplies pizzas, salads and snacks to supermarkets. The companies said they would create a convenience food business with a combined revenue of £4bn.

However, the Competition and Markets Authority (CMA) has said the deal could result in a “substantial lessening of competition” for supermarket own-label chilled sauces.

The watchdog, which has completed its phase 1 investigation into the deal, told the companies they had until 3 November to address its concerns. If it remains unsatisfied, it will start the next phase of its investigation.