Greencore clears key hurdle in Bakkavor deal, targets early 2026 completion

(Reuters) -Greencore said on Friday the UK competition regulator had in principle accepted its proposed remedy to secure approval for its acquisition of convenience food rival Bakkavor, with the deal now targeted to complete in early 2026.

Dublin, Ireland-based Greencore will sell its chilled soups and sauces manufacturing plant in Bristol, which generated revenues of about 47 million pounds ($63.08 million) in the year ended September 26, representing about 1% of the combined group's revenues.

The deal will create a leading UK convenience food business at a time when British companies have become increasingly attractive targets for private equity and strategic buyers due to their relatively depressed valuations.

Greencore, which supplies convenience food to all major supermarkets in Britain, said it is currently engaged with a number of prospective purchasers for the Bristol plant.

The deal still needs final approval from the Competition and Markets Authority and the court's approval of Greencore's proposed commitments.

(Reporting by Yamini Kalia in Bengaluru; Editing by Rashmi Aich)