Overview
- Citing Tuesday's final report, the Competition and Markets Authority unconditionally cleared Associated British Foods’ proposed takeover of Hovis after a Phase 2 investigation.
- The CMA concluded Allied Bakeries has been heavily loss-making and would most likely leave the GB and NI market if the deal were blocked, a finding that shaped the clearance.
- ABF agreed to buy Hovis from private equity firm Endless in August 2025 for about £75m and says it will now move to complete the deal and pursue cost and distribution synergies.
- The inquiry found long‑term pressures on the UK bread sector, including falling demand for packaged loaves, rising supermarket own‑label share and sharp increases in energy, wheat and distribution costs.
- The clearance ends the regulator’s inquiry but raises questions about likely operational changes, potential job impacts, supermarket supply arrangements and how consolidation could affect prices and choice over time.