Concerns over 1,500 employment positions as sandwich manufacturer Greencore enters into a £1.2bn acquisition of competitor Bakkavor.
Revamped Takeover: Supermarket Sandwich Makers Unite
Welcome a new era in the food industry as Greencore, the well-known supermarket sandwich manufacturer, announced a takeover deal worth £1.2 billion for its rival, Bakkavor. This amalgamation results in an assured annual sales revenue of approximately £4 billion, banking on consumer demand for freshly prepared food products.
Around 1,525 jobs – approximately 5% of the total combined workforce of 30,500 – could potentially be on the line in light of the deal. The news has sent ripples of concern amongst workers and trade unions, who fear this may lead to increased competition and consumer price rises.
Union leader Bev Clarkson commented, "Sadly, fewer competitors may likely lead to faster price rises." She expressed her concern about the potential impact on consumers as prices continue to soar. To tackle these concerns, Clarkson is seeking an urgent meeting with company officials.
As for the stock market, shareholders are excited about the news. Greencore shareholders will own around 56% of the merged entity, with Bakkavor owning the remaining 44%. In response to the takeover, Greencore's share prices rose by 0.3%, while Bakkavor's saw a notable increase of 1.7%.
Apart from supplying all major UK supermarkets and Marks & Spencer, Greencore also boasts a Dublin HQ, and 16 factories and 17 distribution centers in the UK. With around 13,300 employees, it's a force to reckon with in the industry.
Bakkavor, on the other hand, has 17,200 staff working across 40 sites in the UK, US, and China. The company prides itself on producing around 3,100 freshly prepared food products at its approximately 20 factories in the UK, including the latest iterations that Bakkavor rejected in previous approaches from Greencore.
In essence, this takeover deal strengthens competition in the food industry, promising a powerhouse with immense sales potential. However, it's crucial to keep an eye on the possible consequences for the workforce and consumers as the companies forge ahead with this exciting venture.
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Investors in the finance sector are keenly watching the developments of the takeover deal between Greencore and Bakkavor in the food industry. This deal, worth £1.2 billion, will create a powerhouse with an estimated annual sales revenue of approximately £4 billion, promising significant growth potential.
Moreover, the amalgamation of the two companies could have a profound impact on the stock market, with Greencore's shareholders set to own around 56% of the merged entity, and Bakkavor owning the remaining 44%. Stocks associated with the combined company may prove to be lucrative investments as the new entity strengthens competition in the industry.
