Bakkavor has further extended Greencore Group’s deadline to make an offer for its fellow UK convenience-foods maker.
In early April, the two companies said their boards had “reached an agreement in principle” on a £1.2bn ($1.59bn) cash-and-shares offer from Greencore after Bakkavor rejected two takeover bids.
In a statement, 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.
The deadline for Greencore to make a firm offer was 11 April. The companies secured an extension to 11 May and Bakkavor said today the UK Panel on Takeovers and Mergers has give approval for the deadline to be pushed back to 23 May.
The company said the deadline may be extended further if its panel agrees to it.
Bakkavor said in a statement the extension was to “allow time to continue discussions with Greencore regarding the other terms and conditions of the possible offer”.
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By GlobalDataUnder the terms of the proposed deal, Greencore would own 56% of the combined group and Bakkavor shareholders the rest.
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, Sainsbury’s and M&S.
In 2024, the company generated more than 80% of its £2.29bn underlying revenue in the UK. It has factories in the US but, last month, announced it was selling its operations in China.
Dublin-based Greencore supplies chilled, frozen and ambient food from 16 factories in the UK. The company’s customers include 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.
