Greencore and Bakkavor have been given more time to continue talks over a possible £1.2bn ($1.57bn) takeover bid.
Last week, the two UK manufacturers said their boards had “reached an agreement in principle” on Greencore’s latest offer for its ready-meals peer after seeing two bids rejected.
In a statement on 2 April, they said Bakkavor’s board had told Greencore it would be “minded unanimously to recommend” to its shareholders the new offer if its suitor put forward a firm intention to make a bid.
Proceeding with the offer was dependent on conditions, including both companies conducting due diligence, but Greencore had until 17:00 UK today (11 April) to announce either way whether it would make a firm bid.
Today, Bakkavor said the UK Panel on Takeovers and Mergers had granted its request to extend that deadline to 9 May.
Bakkavor said the move would “allow time to continue discussions regarding the other terms and conditions of the possible offer, including the completion of mutual confirmatory due diligence to the satisfaction of Greencore and Bakkavor”.
Under the terms of the proposed deal, Greencore would own 56% of the combined group and Bakkavor shareholders the rest.
“This announcement has been made with the consent of Greencore,” Bakkavor said.
Last week, Greencore said the planned acquisition would create a “leading” UK convenience food business with a combined revenue of around £4bn. A deal would still need clearance from competition regulators.
UK-based Bakkavor makes products including ready meals and desserts for customers including Tesco. In 2024, the company generated more than 80% of its £2.29bn underlying revenue in the UK but it also does business – and has factories – in the US and China.
Dublin-based Greencore supplies chilled, frozen and ambient food from 16 factories in the UK. The company’s customers take in major UK grocers including Tesco, Sainsbury’s and Asda. In the group’s last full financial year, it took in £1.81bn in revenue.
In 2018, Greencore announced its exit from the US after a decade in the market, selling its business there to an affiliate of Hearthside Food Solutions for $1.07bn.
