Greencore Plans Reverse Takeover of Bakkavor

Greencore, an Irish convenience food manufacturer, has agreed in principle to acquire its rival Bakkavor in a reverse takeover deal valued at approximately £1.2 billion. This transaction will combine the two companies into a convenience food giant with combined revenues of about £4 billion. Greencore will pay 85 pence in cash and 0.604 Greencore shares for each Bakkavor share, representing a 32.5% premium on Bakkavor's share price as of March 13. Upon completion, Greencore shareholders will own 56% of the merged entity, while Bakkavor shareholders will hold 44%. The acquisition still requires regulatory approval and due diligence, but both companies' boards are inclined to recommend the deal. If successful, the merger will significantly enhance Greencore's market presence, particularly in the UK, US, and China.