ABF receives regulatory clearance for Hovis acquisition
The landmark decision clears the path for ABF, which owns the Kingsmill brand, to finalize its acquisition of Hovis from the private equity firm Endless LLP.
UK – The United Kingdom’s Competition and Markets Authority (CMA) has granted final approval to Associated British Foods’ (ABF) proposed acquisition of bread manufacturer Hovis, allowing the transaction to proceed without restrictions and removing the last major regulatory hurdle for ABF to complete its purchase.
ABF announced plans to acquire Hovis from private equity firm Endless LLP in August 2025, arguing that the combination would help create a more sustainable UK bread business at a time when the sector is facing significant structural pressures.
The decision confirms the Competition and Markets Authority’s (CMA) position when it provisionally cleared the deal in March.
Valued at an estimated £75 million (US$100.65M), the acquisition will unite 16 bakeries and merge the respective companies’ distribution networks.
The move will see ABF, which owns the Kingsmill brand, become the largest bread manufacturer in the UK, commanding an estimated 35% share of the overall market.
The path to approval was not without turbulence. In January 2026, the CMA fast-tracked the merger directly into an in-depth Phase 2 review, utilizing new provisions introduced by the Digital Markets, Competition and Consumers Act 2024, which allows merging entities to expedite their cases.
The regulator had initially expressed concerns over the impact of the merger in Northern Ireland, where Allied Bakeries and Hovis are among the region’s largest bakery suppliers.
However, the CMA ultimately revised its position following further scrutiny. Following additional evidence-gathering and analysis, including a review of Allied Bakeries’ financial performance in Northern Ireland and discussions with potential purchasers, the regulator concluded it was more likely that Allied Bakeries’ Northern Ireland business would have closed if the merger had not gone ahead, as no alternative purchaser would have continued operating the business as a competitor to Hovis.
The CMA’s independent inquiry group found that Allied Bakeries has faced significant and sustained financial challenges amid declining bread consumption and growing demand for lower-margin own-label products.
With competition concerns resolved, ABF is now in a position to finalize its purchase of Hovis and integrate the well-known bakery business into its portfolio, marking an important milestone for the group as it expands its presence within the UK food manufacturing sector.
Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
