Greencore to Buy Foodmaker Bakkavor in £1.2 Billion Deal (2)

Convenience food manufacturer Greencore Group Plc agreed to buy rival Bakkavor Group Plc for about £1.2 billion ($1.6 billion).

The company will pay 85 pence in cash and 0.604 Greencore shares for each Bakkavor one, it said Thursday. The terms are the same that were announced last month, but both boards have now endorsed the deal.

The transaction will combine two London-listed companies that supply prepared meals, salads and sandwiches to UK supermarkets. Both stocks surged, with Greencore rising as much as 6.6% and Bakkavor 4.6% in early London trading.

Greencore said it has received irrevocable undertakings for more ...