UK CMA mulls investigating Greencore's PS1.2 billion buy of Bakkavor
The Competition & Markets Authority on Tuesday said it is considering whether Greencore Group PLC’s planned acquisition of Bakkavor Group PLC may reduce competition in the UK.
Greencore in May agreed a £1.2 billion takeover of Bakkavor, creating a ‘leading UK convenience food business’.
Dublin-based convenience foods maker Greencore will pay 85 pence in cash, plus 0.604 of a new Greencore share for each Bakkavor share.
Greencore shareholders will own 56% of the combined firm, and shareholders in London-based Bakkavor will own 44%.
Based on Greencore’s closing price of 190p on March 13, the deal values each Bakkavor share at 200p and all its equity at £1.2 billion. However, Greencore shares are up 23% since then, so the offer value now is about 226p.
Greencore shares were down 0.2% to 233.50p early Tuesday in London for a market capitalisation of £1.03 billion. Bakkavor shares were down 0.5% to 218.00p for a market cap of £1.26 billion.
The CMA said Tuesday: ‘To assist it with this assessment, the CMA invites comments on the transaction from any interested party.’ The invitation to comment closes on July 22.
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