UK competition watchdog to investigate Kingsmill owner’s planned takeover of Hovis

The Guardian - World NewsCenter-LeftEN 2 min read 100% complete by Kalyeena MakortoffJanuary 8, 2026 at 10:25 AM

AI Summary

medium article 2 min

The UK's Competition and Markets Authority (CMA) has launched an in-depth investigation into Associated British Foods' (ABF) planned £75 million takeover of Hovis, a rival bread brand. The CMA is concerned the merger of the UK's second and third-largest bread brands could reduce consumer choice and increase prices. The "phase 2" investigation, initiated after initial concerns in December, will assess whether the deal substantially lessens competition in the mass-produced baked goods market. The CMA will consider competition from supermarket own-brand labels, Warburtons, and artisanal breads. The investigation is expected to continue until at least the end of June. The announcement coincides with ABF issuing a profit warning due to weak consumer confidence impacting sales, particularly at Primark.

Key Entities & Roles

Key Player Opposition Context

Europe ×240% George Weston 40% Endless 50% Warburtons 50% Primark ×360% Kingsmill ×270% UK ×270% Hovis ×580% Associated British Foods ×480% Competition and Markets Authority ×490%

Keywords

takeover 90% competition and markets authority 80% competition watchdog 80% hovis 70% bread brands 70% abf 70% consumer 60% kingsmill 60% market share 50% grocery 40%