UK regulator clears ABF's £75m Hovis deal

The UK's competition regulator has cleared a deal for Associated British Foods to acquire rival bread maker Hovis, creating the country's largest bread brand. The Competition and Markets Authority announced its unconditional approval on Tuesday, June 16, 2026, concluding the merger does not raise competition concerns because ABF's bakery division would likely have left the market entirely if the deal had been blocked.

The 75 million pound acquisition, announced in August 2025, will combine ABF's Allied Bakeries business, which owns the Kingsmill, Allinsons, and Sunblest brands, with Hovis, which also owns Mothers Pride and Ormo. The CMA launched an in-depth investigation into the proposal last December, citing potential concerns over the new group's share of the bread market.

In its final decision, the regulator stated the most likely outcome without the merger would be Allied Bakeries exiting the market in Great Britain and Northern Ireland. The watchdog cited evidence of severe financial challenges facing both companies, driven by a long-term decline in demand for packaged, sliced bread, a consumer shift toward lower-margin supermarket own-brand products, and significant...