The UK's competition regulator has formally begun an inquiry into the takeover of the iconic Hovis bread brand by food giant Associated British Foods (ABF).
Scrutiny for a Major Bakery Merger
The Competition and Markets Authority (CMA) confirmed on Friday, 19 December 2025, that it has commenced a phase one investigation into the deal. ABF secured the purchase of the 135-year-old Hovis business from its American private equity owner, Endless, back in August.
The company plans to merge Hovis with its existing Allied Bakeries operation, which produces the Kingsmill and Allinson's bread ranges. This move would create a substantial new force in the UK baking industry, positioned to compete with major players like Warburton's and leading supermarket own-brand products.
CMA's Timeline and Industry Impact
The regulator's action follows its request in September for feedback from stakeholders on how the merger might affect competition within the sector. The CMA has stated it will decide by 19 February whether a more in-depth phase two investigation is necessary.
An ABF spokesperson commented on the development, saying, "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."
The spokesperson added that ABF would continue to cooperate to demonstrate how the transaction would create "a more sustainable competitor that is better able to invest, innovate and deliver for customers."
Strategic Motives and Operational Synergies
The acquisition follows a strategic review of ABF's Allied Bakeries division, which has been recording losses in recent years due to intense cost pressures and shifting consumer habits. ABF has stated that combining Hovis and Allied Bakeries will unite their production and distribution networks, leading to significant cost synergies and operational efficiencies.
The combined entity would bring together a vast network of sites across the UK. Hovis operates from locations including:
- Avonmouth
- Wellingborough
- Nottingham
- Golborne, near Wigan
- Bradford
Allied Bakeries also has a widespread presence with bakeries and depots in areas such as Cardiff, Stoke-on-Trent, West Bromwich, Lincoln, Stockport, Liverpool, and Gateshead.
The outcome of the CMA's probe will be closely watched, as it has the potential to significantly alter the competitive landscape of the British bread market.
