Overview

• ABF and Endless are in ongoing discussions about merging Hovis and Kingsmill, with no final deal or valuation yet agreed upon.
• The proposed combination would create a major player in the UK bakery market, with a combined 41% market share, challenging Warburtons' 34% share.
• The merger could face scrutiny from the Competition and Markets Authority, as it would reduce the number of major supermarket bread suppliers from three to two.
• Industry insiders estimate up to £50 million in cost savings through combined distribution networks, though a joint venture has been floated as a less likely alternative.
• The talks come as the UK bakery sector faces rising costs from inflation, competition from niche producers, shifting consumer diets, and the impact of the Ukraine war on wheat prices.