The Competition and Markets Authority (CMA) is to complete its phase 1 merger inquiry on Associated British Foods’ (ABF) proposed takeover of Hovis by 19 February 2026.
The competition watchdog had previously begun probing the acquisition back in September, when it launched an invitation for interested parties to submit any initial views on the impact that the transaction could have on competition in the UK bread market.
First announced on 15 August, the deal between ABF – which produces brands including Kingsmill, Allinson’s, and Sunblest – and Hovis’ private equity owner Endless is designed create a ‘profitable UK bread business’. Financial details have yet to be revealed.
Both manufacturers have struggled with a shift in the bakery market, which has seen wrapped bread sales decline by 3.4% year on year whilst the speciality bread and morning goods category increased by 8.4%.
Data from NIQ, published as part of The Grocer’s Top Products survey, showed Hovis sales had dropped 8.8% over the year to 6 September 2025 with Kingsmill plummeting by 31.5%. This has allowed Jason’s Sourdough to overtake Kingsmill and claim third in the UK’s bread brand rankings behind Hovis. Warburtons’ domination of both the wrapped bread and morning goods/speciality bread categories has kept it comfortably in the lead.
ABF described the commencement of a phase 1 investigation into its proposed Hovis acquisition as an “important milestone” which follows it working constructively with the CMA to outline the challenges and changes taking place in the UK’s bakery sector.
“ABF will continue to work closely with the CMA to ensure this case is run as efficiently as possible and to demonstrate why this transaction will help to create a more sustainable competitor that is better able to invest, innovate and deliver for customers,” commented a company spokesperson.
Should the inquiry raise anti-competitive concerns about the transaction between the bread manufacturers, it could progress to a phase 2 investigation and require structural remedies such as the selling off of key assets or a more limited deal. This had been the case with the Greencore takeover bid for fellow food-to-go manufacturing giant Bakkavor, which was subsequently cleared by the CMA after Greencore agreed to sell its chilled soup and sauces factory in Bristol to The Compleat Food Group. The acquisition is now expected to be completed on 16 January 2026.
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