CMA begins phase one investigation into proposed ABF acquisition of Hovis
The Competition and Markets Authority has confirmed it has commenced its phase one investigation into the proposed takeover of Hovis by Allied Bakeries owner, Associated British Foods.
In an update just before Christmas, the CMA revealed that its deadline for announcing its decision whether to refer the merger for a phase 2 investigation is 19th February 2026.
“The Competition and Market Authority hereby gives notice pursuant to section 96(2A) of the Enterprise Act 2002 that the merger notice provided by Associated British Foods plc, Hovis Group Limited and Endless LLP in relation to the anticipated acquisition by ABF (via its wholly owned indirect subsidiary, ABF Grain Products Limited) of Hovis, meets the requirements of section 96(2) of the Act,” stated the announcement.
The initial period defined in section 34ZA(3) of the Act in relation to the Transaction commenced on 22nd December 2025.
The first step of the CMA’s information-gathering process – an invitation to comment time period – concluded in early October, with the next stage including the launch of its formal investigation into the transaction.
It was announced last summer that Hovis Group would be bought over by ABF, with the proposed acquisition hailed as a “significant step towards creating a more sustainable and efficient bakery operation in the UK”.
In a statement, ABF said the acquisition would combine the production and distribution activities of the two businesses, driving significant costs synergies and efficiencies, to create a profitable UK bread business that is sustainable over the long-term.
Responding to the CMA’s December announcement, a spokesperson for ABF said: “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.
“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.”
