BAKKAVOR & GREENCORE AGREE TERMS

Bakkavor and Greencore Agree Terms to Create £4bn Food-to-Go Powerhouse

Bakkavor and Greencore have reached an agreement to merge, forming a new £4 billion giant in the UK's food-to-go manufacturing sector. The deal brings together two of the country’s leading producers of chilled convenience foods, uniting expertise in sandwiches, salads, ready meals, dips, and soups under one roof.

The terms of the agreement value Bakkavor at a significant premium, with shareholders receiving a combination of cash and new shares in the merged entity. Upon completion, Greencore shareholders will hold a majority stake in the new company, while Bakkavor investors will take a sizeable minority share.

This merger is expected to unlock substantial operational efficiencies. Both companies aim to integrate their manufacturing sites, distribution networks, procurement systems, and support services. The complementary nature of their portfolios – with Greencore’s stronghold in the sandwich market and Bakkavor’s established presence in ready meals and fresh food – positions the new business as a comprehensive supplier to the UK’s major supermarket chains.

While the merger promises growth and innovation, it also raises concerns among the workforce. There are fears over potential job losses and site rationalisations as cost-saving measures are explored. Employee representatives are calling for clear commitments to protect jobs and ensure that factory closures do not follow.

The proposed merger is likely to draw attention from competition authorities, given the new entity’s size and influence in the UK chilled food market. Regulatory approvals and shareholder votes are still pending, with a decision expected in the coming weeks.

If approved, the merger will create one of the most powerful players in the food-to-go space, promising improved product offerings, increased investment in innovation, and greater resilience in a competitive market.