Greencore and Bakkavor propose historic £1.2 billion merger

In 2008, Bakkavor, a company founded by Icelandic brothers Agust and Lydur Gudmundsson, took an 11 percent stake in Greencore, a Dublin-based food company. However, the financial crisis that year greatly affected their finances, prompting them to divest their stake. Since that time, the companies have frequently been mentioned as potential merger candidates, suggesting a strong desire for collaboration between them. The ongoing interest from M&A bankers culminated recently in a formal proposal for a £1.2 billion merger, which has reignited speculation about the future dynamics of the ready-made food market in the UK. The implications of this proposed merger are significant, especially considering the historical ties and shared interests of both companies, which have remained active in the food sector since the 1990s. The potential tie-up could transform the landscape of supermarket-ready meals, bringing together the unique strengths of both companies and positioning them for more robust growth against competitors in a rapidly evolving market. As financial analysts and market experts delve into the details of this proposition, stakeholders will keep a close eye on the developments surrounding this merger proposal, which has been a topic of conversation within corporate circles for almost two decades.