Greencore has made a third takeover bid for rival food supplier Bakkavor after its previous £1.1 billion offer was rejected earlier this month. The latest proposal values Bakkavor at 189p per share, offering a 25% premium on its market price.
The offer includes 85p in cash per share and 0.523 Greencore shares, with Bakkavor shareholders also eligible for a 4.8p dividend. If accepted, Greencore shareholders would own 59.8% of the combined company, while Bakkavor investors would hold 40.2%.
Both companies are major UK food manufacturers, supplying ready meals and food-to-go products to supermarkets. Greencore, headquartered in Ireland with a UK base in Worksop, turned over £1.8 billion last year and operates 14 factories nationwide. Bakkavor, which generated £2.3 billion in revenue in 2024, runs 20 factories and four distribution centres. The company has faced supply chain disruptions, including a strike at its Spalding site that led to shortages of dips, soups, and wraps.
Bakkavor’s board has rejected Greencore’s offers, stating they undervalue the company and its prospects. Greencore said it remains open to strategic opportunities but has not confirmed whether it will make a firm offer.
