The competition watchdog has warned that food manufacturer Greencore's acquisition of competitor Bakkavor could lead to the "substantial lessening of competition" for the provision of chilled supermarket sauces.

It came as the Competition and Markets Authority (CMA) wrapped up an initial phase one examination of the £1.2bn deal. The watchdog first announced in July this year plans to scrutinise the transaction between the two food giants.

Greencore is headquartered in Dublin, while London-based Bakkavor has sites across the UK including in Somerset, Wiltshire, Aston in the West Midlands, Crewe in Cheshire, Barton in West Lancashire, and across the East of England and the South East.

In its latest announcement, the CMA indicated it held no competition worries regarding the overwhelming

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