Overview

• ABF is putting the finishing touches on its £75m acquisition of Hovis from private equity firm Endless, with an announcement anticipated by the end of this week though timing may still shift.
• The merger will place Hovis alongside ABF’s Kingsmill under one roof, creating the UK’s largest packaged bread supplier by uniting the sector’s second and third-largest brands.
• Analysts estimate the combined group could achieve up to £50m in annual cost savings through operational integration and scale efficiencies.
• Regulators at the Competition and Markets Authority are poised to conduct a comprehensive review of the deal given the new entity’s significant market share in the £5bn-a-year UK bread market.
• ABF’s strategy reflects efforts to strengthen Allied Bakeries against inflationary costs, evolving consumer preferences and competition from market leader Warburtons.