The Competition & Markets Authority (CMA) has launched a probe into Associated British Foods’ (ABF) acquisition of Hovis from private equity group Endless.
The CMA now has until 19 February to investigate whether the merger with ABF subsidiary Kingsmill would prove a substantial threat to competition.
Inked in August, the deal would merge Hovis and Kingsmill’s substantial production and distribution operations to create a contender against market leader Warburtons.
Read more: Can a Hovis and Kingsmill combo stop the rot in sliced bread?
The phase one investigation – standard procedure after the invitation to comment launched in September – will conclude whether the CMA will start in-depth proceedings, known as a phase two investigation, which might require ABF to offer concessions in the form of divestments or a more limited acquisition.
“This formal step is an important milestone and follows ABF working constructively with the CMA to outline the challenges and changes taking place in the UK’s bakery sector,” said an ABF spokesman.
“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.”
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%.
The pair have faced stiff competition from consumer trends towards sourdough and specialty baked goods, as shoppers turned towards more premium options for basic staples.
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