Phase 2 terms of reference published into bread business merger inquiry
In a further update to its phased investigation into the proposed takeover of Hovis by Allied Bakeries owner, Associated British Foods, the Competition and Markets Authority has published the phase two terms of reference, as the merger process is fast-tracked.
Interim Chief Economic Adviser, Jenny Haydock stated on 8th January that the CMA had accepted the fast-track reference request made by ABF, Hovis Group Limited and Endless LLP, having concluded that the conditions to accept a fast-track reference request had been met.
As a result, the CMA made a reference to its chair for the constitution of a group under Schedule 4 to the Enterprise and Regulatory Reform Act 2013 in order that the group may investigate and report, within a period ending on 24th June 2026, on the following questions: whether arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation; and if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the UK for goods or services.
In a previous update made before Christmas, the CMA revealed that its deadline for announcing its decision whether to refer the merger for a phase 2 investigation was 19th February 2026.
Responding to the CMA’s December announcement, a spokesperson for ABF said they would continue to work closely with the CMA to ensure the 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”.
