Greencore has moved a step closer to sealing the takeover of fellow convenience food business Bakkavor as both boards have now put their recommendations behind the transaction.

In an update on proceedings today (15 May), Dublin-headquartered Greencore said it has “received irrevocable undertakings” from Bakkavor shareholders holding 69.4% of the shares in the UK-based business to accept the offer.

Shareholders of Greencore, which first proposed a deal for Bakkavor early in March, will now have to vote on approving the deal on or around 4 July, according to a stock exchange filing.

In the meantime, Greencore’s directors have already given the green light to the transaction, which has been valued at around £1.2bn ($1.6bn) to create a combined private-label business with revenue of circa £4bn.

Greencore CEO Dalton Philips said: “The combination of Greencore and Bakkavor is an unrivalled opportunity to create a true UK national food champion with an even greater breadth of category range and deeper customer relationships.

“We look forward to welcoming Bakkavor’s employees and creating an exciting, combined business for all stakeholders. Bakkavor is the ideal partner for Greencore and we look forward to delivering on the significant growth potential of the enlarged business.”

Conversely, Bakkavor shareholders are expected to meet on or around 7 July to vote on accepting the deal.

Greencore suggested the takeover is likely to be cemented “early” in 2026, but it will still need approval from the UK’s Competition and Markets Authority.

If cleared, Bakkavor shareholders will receive 0.604 new Greencore shares at 85 pence each, along with one so-called contingent value right.

The contingent proportion relates to the proposed sale of Bakkavor’s US operations, Greencore said today as the ready meals to sandwiches supplier simultaneously raised its outlook for adjusted operating profit for fiscal 2025.

“Bakkavor may, prior to the effective [transaction] date, sell the US business if it determines that such a sale is in the best interests of Bakkavor, having regard to the best interests of its US customers, employees and other stakeholders, which are highly valued by Bakkavor,” Greencore said today.

If the sale of the US business has not been agreed by the takeover date, Greencore will still proceed to offload the business.

Mike Edwards, the CEO of Bakkavor, added: “Combining with Greencore would bring together two businesses with the best people in the industry allowing us to take a ‘best-of-both approach’ to drive performance on every level.