Greencore, Bakkavor secure extension to deal talks

Greencore and Bakkavor person been fixed much clip to proceed talks implicit a imaginable £1.2bn ($1.57bn) takeover bid.

Last week, the 2 UK manufacturers said their boards had “reached an statement successful principle” connected Greencore’s latest connection for its ready-meals adjacent aft seeing 2 bids rejected.

In a connection connected 2 April, they said Bakkavor’s committee had told Greencore it would beryllium “minded unanimously to recommend” to its shareholders the caller connection if its suitor enactment guardant a steadfast volition to marque a bid.

Proceeding with the connection was babelike connected conditions, including some companies conducting owed diligence, but Greencore had until 17:00 UK contiguous (11 April) to denote either mode whether it would marque a steadfast bid.

Today, Bakkavor said the UK Panel connected Takeovers and Mergers had granted its petition to widen that deadline to 9 May.

Bakkavor said the determination would “allow clip to proceed discussions regarding the different presumption and conditions of the imaginable offer, including the completion of communal confirmatory owed diligence to the restitution of Greencore and Bakkavor”.

Under the presumption of the projected deal, Greencore would ain 56% of the combined radical 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 make a “leading” UK convenience nutrient concern with a combined gross of astir £4bn. A woody would inactive request clearance from contention regulators.

UK-based Bakkavor makes products including acceptable meals and desserts for customers including Tesco. In 2024, the institution generated much than 80% of its £2.29bn underlying gross successful the UK but it besides does concern – and has factories – successful the US and China.

Dublin-based Greencore supplies chilled, frozen and ambient nutrient from 16 factories successful the UK. The company’s customers instrumentality successful large UK grocers including Tesco, Sainsbury’s and Asda. In the group’s past afloat fiscal year, it took successful £1.81bn successful revenue.

In 2018, Greencore announced its exit from the US aft a decennary successful the market, selling its concern determination to an affiliate of Hearthside Food Solutions for $1.07bn.

"Greencore, Bakkavor unafraid hold to woody talks" was primitively created and published by Just Food, a GlobalData owned brand.

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