REG - Competition and Mkts - Merger Update: Associated British Foods/Hovis

Associated British FoodsAnnouncement

Today 08:15

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RNS Number : 1653Y  Competition and Markets Authority  26 March 2026

CMA publishes interim report in bread merger investigation

 

The Competition and Markets Authority (CMA) has published an interim report in
its investigation of the anticipated acquisition by Associated British Foods
plc (through ABF Grain Products Limited) of Hovis Group Limited.

 

ABF operates its UK bakery business through Allied Bakeries or AB. AB owns
Kingsmill and currently supplies branded bread and other bakery products
throughout the UK, competing with Hovis, Warburtons and other bakery
businesses. AB and Hovis are also important suppliers of own-brand bakery
products sold by the major supermarkets.

 

When investigating a merger, the CMA compares its effects with what would most
likely happen if the merger did not go ahead. In this case, having conducted a
thorough investigation, the inquiry group has provisionally found that if the
merger did not go ahead, AB would close. In Great Britain, the inquiry group
has also provisionally found that AB would not continue competing with Hovis
under new ownership. The group has therefore provisionally found that the
merger would not substantially reduce competition in Great Britain; with or
without the merger, competition between AB and Hovis would be lost.

 

However, the group has provisionally found that in Northern Ireland, there
would have been an alternative buyer for the AB business who would continue
competing with Hovis. The group has provisionally found that the merger raises
competition concerns specific to Northern Ireland.

 

The inquiry group is now inviting ABF and Hovis to submit a remedy proposal
within the next 14 calendar days, which the CMA would then expect to consult
on publicly.

 

The inquiry group will seek feedback on its interim report before making a
final decision by 24 June 2026. The deadline for comments is Thursday 16 April
2026.

 

For more information, visit the ABF / Hovis merger inquiry - GOV.UK
(https://www.gov.uk/cma-cases/abf-slash-hovis-merger-inquiry)  case page.

 

 ENDS 

 

Notes to editors:

1.   For media enquiries, contact the CMA press office on 020 3738 6460
or press@cma.gov.uk (mailto:press@cma.gov.uk) .

 

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