Kingsmill owner cleared to create UK’s biggest bread brand with Hovis takeover

Associated British Foods (ABF) has received clearance from the Competition and Markets Authority (CMA) for its £75 million acquisition of Hovis, a deal poised to establish the UK's largest bread brand. The CMA concluded that the proposed takeover of Hovis by ABF, the owner of Kingsmill, does not present competition concerns. This decision was based on the assessment that if the deal were to be blocked, ABF's bakery division would most likely exit the UK market entirely. The CMA's investigation considered the potential impact on competition within the UK bread market, ultimately determining that the acquisition would not lead to a substantial lessening of competition. This clearance allows ABF to proceed with integrating Hovis into its existing bakery operations, consolidating its position in the UK's staple food sector.