The CMA has provisionally cleared Associated British Foods’ merger with Hovis, barring competition concerns in Northern Ireland, after finding ABF’s Allied Bakeries would otherwise close.
Troubled Kingsmill owner Allied Bakeries would be forced to close down in Great Britain if its proposed merger with Hovis fell through, the CMA’s independent panel discovered after discussions with major grocery retailers.
Allied Bakeries’ significant losses over the past 14 years would leave ABF no choice but to shut it down, with a potential buyer found only for its Northern Ireland business, the CMA said.
Read more: Can a Hovis and Kingsmill combo stop the rot in sliced bread?
In light of a potential closure of Allied Bakeries in Britain, the CMA added its merger with Hovis would not substantially reduce competition.
However, in Northern Ireland, Allied Bakeries would have been able to continue operating – and competing with Hovis – under another owner.
ABF has kicked off a sale process for its Northern Ireland bakery business to address competition concerns.
A spokeswoman for the group called the report “welcome recognition” that the deal would create “a far more effective competitor” for the industry, as the merged company would now have the resources to invest in innovation and growth.
”We have been clear with the CMA that the transaction is the only route to creating a sustainably profitable business,” she added.
”The CMA has recognised that, if the transaction is not allowed to proceed, Allied Bakeries will be unable to continue operating under current market conditions. We will continue to engage constructively with the CMA, including with regard to our Northern Ireland business, so that we can achieve regulatory clearance as efficiently as possible.”
The CMA’s findings came after ABF requested to fast-track the investigation to an in-depth phase 2 inquiry in January 2026.
The plant bread market is in structural decline, as Brits turn towards specialty items such as sourdough or protein-enriched baps for their lunches, and Kingsmill’s closure would have followed the failures of Jacksons and Roberts bakeries, which were sold out of administration in 2023 and 2025 respectively. Morrisons also closed down its Rathbones bakery in January 2026.
Both ABF and Hovis have suffered from the decline in plant bread volumes in recent years. The Grocer’s Top Products report with NIQ revealed Hovis’s till sales were down 8.8% in the 52 weeks to 6 September 2025. Kingsmill’s sales were nearly a third of the prior year, down 31.5%.
No comments yet