Greencore-Bakkavor merger: CMA raises concerns in chilled sauces but not ready meals

Core Viewpoint - The merger between Greencore and Bakkavor has raised competition concerns in the UK, particularly in the chilled sauces segment, but not in ready meals and salads [1][2]. Competition Concerns - The Competition and Markets Authority (CMA) indicated that the merger could lead to a "substantial lessening of competition" specifically in own-label chilled sauces [1]. - The CMA has identified 2 Sisters Food Group and Billington Foods as "material" competitors in the sauces market, although they are considered "weaker" competitors [3]. Regulatory Process - The CMA has given Greencore and Bakkavor until November 3 to propose remedies to address the competition concerns in chilled sauces [2][4]. - A failure to provide adequate remedies could result in a more detailed Phase-two investigation by the CMA [4]. Market Impact - The merger is expected to create a private-label business with an estimated revenue of £4 billion ($5.3 billion) [6]. - Approximately 99% of the revenues of the combined group do not raise competition concerns according to the CMA [5]. Company Statements - Greencore and Bakkavor expressed their commitment to work constructively with the CMA to resolve the issues raised [4]. - Dalton Philips, CEO of Greencore, welcomed the CMA's Phase-one decision, highlighting the complementary nature of their businesses [5]. - Mike Edwards, CEO of Bakkavor, noted that the CMA's positive news is a significant step forward in the merger process [7].