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UK Competition Probe into Hovis Deal
19 Dec, 2025
Summary
- Watchdog investigates Associated British Foods' Hovis takeover.
- Merger aims to create a major UK baking sector player.
- Formal phase one investigation launched by regulator.
The UK's competition watchdog has officially launched a phase one investigation into Associated British Foods' (ABF) plan to acquire Hovis. This move follows ABF's August agreement to purchase the well-known bread brand from its US private equity owner. The proposed merger involves combining Hovis with ABF's existing Allied Bakeries business, which produces brands like Kingsmill and Allinson's.
The anticipated deal aims to establish a substantial new entity within the UK's baking industry, poised to challenge established players like Warburton's and supermarket private labels. The Competition and Markets Authority (CMA) had previously sought input on the potential competitive impact of this transaction.
The regulator is expected to announce by February 19 whether the merger warrants a more extensive phase two review. ABF has stated its commitment to cooperating with the CMA, emphasizing that the transaction will foster a more resilient competitor capable of increased investment and innovation in the sector.
