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The UK’s competition watchdog on Tuesday opened a public consultation on Greencore Group PLC’s proposed divestment of its Bristol chilled soups and sauces site, a remedy it had previously said it was willing to consider ‘in principle’. The move is a step in the Competition & Markets Authority’s review of Greencore’s planned takeover of Bakkavor Group PLC, coming ahead of a potential phase 2 investigation. The CMA said it is consulting on undertakings offered by Greencore after the company on Tuesday confirmed it has agreed to sell the Bristol site to Compleat Food Group Holding Ltd. The watchdog had earlier warned the acquisition ‘could result in a substantial lessening of competition in the supply of own-label chilled sauces’, potentially leading to higher prices or reduced quality for supermarket customers, as both Greencore and Bakkavor supply UK grocery retailers. The CMA had previously warned the planned acquisition ‘could result in a substantial lessening of competition in the supply of own-label chilled sauces’, potentially leading to higher prices or reduced quality for supermarket customers, as both Greencore and Bakkavor supply products to UK grocery retailers. Then on November 7, the CMA said it had agreed ‘in principle’ to consider the proposed divestment, and on Tuesday formally launched a consultation on whether the remedy is sufficient to address its concerns. Greencore agreed in May to acquire London-based Bakkavor in a cash-and-shares deal worth around £1.2 billion at the time. To secure approval, it has offered to sell its entire chilled soups and sauces facility in Bristol, which generated £47 million of revenue in financial 2025. Interested parties have until December 3 to submit feedback. The CMA must then decide by January 12 whether to accept the undertaking or refer the merger to a full phase 2 probe. Acceptance would avert a deeper investigation and keep the deal on track to complete in early 2026, the timetable Greencore continues to expect. Shares in Greencore topped the FTSE 250 index at midday on Tuesday, up 5.6% at 236.50 pence. Bakkavor was closely following on second place, up 3.7% to 226.50p. Alongside the divestment update, Greencore reported a sharp rise in annual earnings on Tuesday. Pretax profit increased 29% to £79.5 million in the year to September 26, from £61.5 million. Revenue rose 7.7% to £1.95 billion from £1.81 billion, while adjusted operating profit also grew 29% to £125.7 million, lifting adjusted operating margin by 110 basis points to 6.5%. Free cash flow strengthened to £120.5 million, and net debt excluding leases fell to £70.1 million from £148.1 million. Chief Executive Officer Dalton Philips said financial 2025 was an ‘outstanding’ year, adding that trading at the start of the new financial year ‘has started positively’. Greencore proposed a total dividend of 2.6 pence, up 30% from 2.0p, and confirmed it will now adopt a progressive dividend policy. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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