UK competition watchdog to launch in-depth probe of AB Foods' Hovis deal (updated)
08/01/2026 07:41
ABF announced Hovis acquisition in August last year Hovis holds 18% of pre-sliced packaged bread market Adds Hovis response in paragraph 6, background in 3-4 Jan 8 (Reuters) - Britain's competition regulator said on Thursday that it would fast-track its probe of Associated British Foods' ABF.L deal to buy bread brand Hovis from private equity firm Endless to an in-depth investigation. The move comes just weeks after the Competition and Markets Authority (CMA) said it would examine the deal, which would add another major UK bread brand to ABF's portfolio and strengthen its position amid falling demand for packaged sliced loaves. Primark-parent ABF, which owns the Kingsmill, Allinson's, and Sunblest brands, announced the deal to buy 135-year-old Hovis for an undisclosed sum in August last year. Hovis has about 18% of the pre-sliced, packaged bread market, while ABF's Allied Bakeries has about 6%. Industry leader Warburtons has about 28%. "Our priority is to achieve regulatory clearance as efficiently as possible and we are pleased to have agreed with the CMA that we will fast-track to the in-depth and detailed final phase of their merger review," an ABF spokesperson said. "We will continue to work constructively with the CMA to demonstrate the benefits of the transaction." A Hovis spokesperson said the company will continue working with the CMA to secure clearance for the deal as soon as possible. (Reporting by Shashwat Awasthi and Ankita Bora in Bengaluru; Editing by Rashmi Aich and Louise Heavens) ((Shashwat.Awasthi@tr.com))