Bakkavor has given its initial approval to a £1.2 billion cash and share takeover offer from Greencore.
The boards of both companies have agreed on the key financial terms of the deal, which would create a combined convenience foods business with an estimated turnover of approximately £4 billion.
Reports last week revealed that Greencore returned with a third offer after its second proposal, valued at around £1.14 billion, was rejected on 10 March.
The transaction is still subject to agreement on the remaining terms of the offer and obtaining regulatory approval.
The offer values Bakkavor at 85 pence per share, plus 0.604 Greencore shares for each Bakkavor share held, bringing the total value to approximately £1.2 billion. The Bakkavor board has unanimously agreed to recommend the deal to its shareholders.
Under the terms of the agreement, Greencore shareholders would hold around 56% of the combined entity, while Bakkavor shareholders would retain the remaining 44%.
Greencore raised its profit expectations yesterday after sustaining strong sales momentum in Q2, although it clarified that the announcement was unrelated to any potential deal with Bakkavor.
For the year ending 26 September 2025, the company expects its operating profit to fall between £112 million and £115 million.
