Merger Update: Associated British Foods/Hovis

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 case page.

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Notes to editors:

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