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Watchdog Probes £75M Hovis Takeover by Kingsmill Owner
9 Jan
Summary
- Competition watchdog launched a full probe into the £75 million Hovis takeover.
- Fears that the deal could significantly reduce market competition exist.
- Kingsmill owner ABF's combined share could rival industry leader Warburtons.
The competition watchdog has initiated a comprehensive investigation into the £75 million acquisition of Hovis by Associated British Foods (ABF), the owner of Kingsmill.
This move follows concerns that the merger could substantially reduce competition within the bread market. Hovis holds approximately 18 percent of the sliced and packaged bread market, while ABF holds 6 percent. The combined entity could potentially surpass Warburtons as the market leader.
ABF has stated its commitment to cooperating with the Competition and Markets Authority (CMA) to expedite regulatory clearance, agreeing to proceed directly to the final, in-depth review phase of the merger.
