The UK Competition and Markets Authority (CMA) clears Associated British Foods (ABF) to acquire Hovis in a deal reported to be worth £75m. The regulator finds the takeover does not raise competition concerns. According to the CMA, the effects of the merger are considered in light of what would happen if the transaction did not proceed. It concludes that the most likely alternative outcome would be ABF’s bakeries arm exiting the UK market entirely rather than continuing as a competitor. On that basis, the CMA rules that the deal is unlikely to worsen competition in bread or related product markets. Multiple outlets report the decision as an approval that allows ABF to move ahead with the acquisition. The combined businesses are expected to create one of the largest bread brands in the UK, bringing Hovis under ABF’s bakeries operations. Separate reporting referenced by the search results also notes that other major bakery-related mergers have been approved by regulators, but the CMA decision highlighted across sources is the clearance of ABF’s proposed acquisition of Hovis.
CMA clears ABF’s £75m takeover of Hovis, creating a major UK bread brand
The UK Competition and Markets Authority (CMA) clears Associated British Foods (ABF) to acquire Hovis in a deal reported to be worth £75m. The regulator finds the takeover does not raise competition c...
- The CMA approves Associated British Foods’ proposed takeover of Hovis.
- The deal is reported to be worth about £75m.
- The CMA says the merger does not raise competition concerns.
- The CMA cites that, if the deal fails, the likely outcome is ABF’s bakeries arm leaving the UK market.
- The acquisition is expected to create a major UK bread brand.
The takeover of Hovis by Kingsmill owner Associated British Foods (ABF) has been cleared by UK regulators.
3 hours agoThe takeover of Hovis by Kingsmill owner Associated British Foods (ABF) has been cleared by UK regulators.
3 hours agoHovis: Merger of two major NI bakeries approved by watchdog BBCKingsmill owner cleared to create UK’s biggest bread brand with Hovis takeover The GuardianCMA clears ABF’s deal to buy bread maker Hovis GOV.UKAssociated British Foods toasts approval for £75m Hovis takeover City AMCMA clears AB Foods’ acquisition of Hovis Sharecast.com
4 hours agoABF’s bakeries arm would be likely to exit the market entirely if the deal did not proceed, CMA findsBusiness live – latest updatesA £75m deal for the owner of Kingsmill to buy Hovis to create the UK’s biggest bread brand has been cleared by the competition watchdog.The Competition and Markets Authority (CMA) ruled that Associated British Foods’ proposed takeover of Hovis did not raise competition concerns because if the deal did not go ahead “the most likely outcome” would be ABF’s bakeries arm leaving the UK market entirely. Continue reading...
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