The Competition and Markets Authority (CMA) on Friday announced the launch of an inquiry into the anticipated acquisition of Hovis by Associated British Foods (ABF).
ABF, which owns Kingsmill through its subsidiary Allied Bakeries, in August said it had reached an agreement to acquire Hovis Group from private equity firm Endless LLP.
The companies said the deal create a “profitable UK bread business that is sustainable over the long term” by combining the production and distribution activities of the two businesses.
Responding the CMA's announcement, a spokesperson for Associated British Foods said: “This formal step is an important milestone and follows ABF working constructively with the CMA to outline the challenges and changes taking place in the UK’s bakery sector.
“ABF will continue to work closely with the CMA to ensure this case is run as efficiently as possible and to demonstrate why this transaction will help to create a more sustainable competitor that is better able to invest, innovate and deliver for customers.”
CMA is expected to announce its decision whether to refer the merger for a detailed, phase 2 investigation by 19 February 2026.
Founded in 1886, Hovis manufactures bread and bakery products for the UK’s major grocery retailers and local convenience stores. Endless acquired Hovis from Gores Group and Premier Foods plc in November 2020.
Allied Bakeries, a UK bakery business founded in 1935, produces bread and bakery products, including under the Kingsmill brand.