The Competition and Markets Authority (CMA) is seeking views on the anticipated acquisition by Associated British Foods plc (through ABF Grain Products Limited) of Hovis Group Limited.
CMA stated today (Sept 18) that while “not yet a formal investigation”, the watchdog is inviting comments from interested parties on whether the deal could reduce competition in the UK bread and bakery sector.
ABF, whose food division includes Kingsmill-owner Allied Bakeries, agreed to acquire Hovis earlier this year in a move that would bring two of Britain’s biggest bread makers under the same parent company.
The CMA is issuing this preliminary "invitation to comment" to allow interested parties to submit to the CMA any initial views on the impact that the transaction could have on competition in the UK.
The CMA has not yet launched its formal investigation into this transaction. This invitation to comment is the first part of the CMA’s information-gathering process.
To assist it with this assessment, the CMA invites comments on the transaction from any interested party.
Earlier this week, it was reported that Hovis chief executive Jon Jenkins is stepping down after three years at the helm.
Jenkins, who leaves his role in mid-September, was praised by private equity owner Endless for steering Hovis through a turbulent period of soaring raw material costs and for strengthening its range of products.
Oversight of the bakery business will now rest with current non-executive director Di Walker, who will assume chair of the Hovis board while the executive team maintains the company’s existing strategic direction.
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.
ABF owns Allied Bakeries, a UK bakery business founded in 1935, which produces bread and bakery products, including under the Kingsmill brand.