Greencore and Bakkavor have been given extra time to proceed talks over a potential £1.2bn ($1.57bn) takeover bid.
Final week, the 2 UK producers mentioned their boards had “reached an settlement in precept” on Greencore’s newest supply for its ready-meals peer after seeing two bids rejected.
In an announcement on 2 April, they mentioned Bakkavor’s board had instructed Greencore it will be “minded unanimously to advocate” to its shareholders the brand new supply if its suitor put ahead a agency intention to make a bid.
Continuing with the supply was depending on situations, together with each corporations conducting due diligence, however Greencore had till 17:00 UK in the present day (11 April) to announce both manner whether or not it will make a agency bid.
At the moment, Bakkavor mentioned the UK Panel on Takeovers and Mergers had granted its request to increase that deadline to 9 Might.
Bakkavor mentioned the transfer would “enable time to proceed discussions concerning the opposite phrases and situations of the potential supply, together with the completion of mutual confirmatory due diligence to the satisfaction of Greencore and Bakkavor”.
Underneath the phrases of the proposed deal, Greencore would personal 56% of the mixed group and Bakkavor shareholders the remaining.
“This announcement has been made with the consent of Greencore,” Bakkavor mentioned.
Final week, Greencore mentioned the deliberate acquisition would create a “main” UK comfort meals enterprise with a mixed income of round £4bn. A deal would nonetheless want clearance from competitors regulators.
UK-based Bakkavor makes merchandise together with prepared meals and desserts for patrons together with Tesco. In 2024, the corporate generated greater than 80% of its £2.29bn underlying income within the UK but it surely additionally does enterprise – and has factories – within the US and China.
Dublin-based Greencore provides chilled, frozen and ambient meals from 16 factories within the UK. The corporate’s prospects soak up main UK grocers together with Tesco, Sainsbury’s and Asda. Within the group’s final full monetary 12 months, it took in £1.81bn in income.
In 2018, Greencore introduced its exit from the US after a decade out there, promoting its enterprise there to an affiliate of Hearthside Meals Options for $1.07bn.
