{"id":10503,"date":"2026-01-08T13:51:14","date_gmt":"2026-01-08T13:51:14","guid":{"rendered":"https:\/\/microvibenews.com\/?p=10503"},"modified":"2026-01-08T13:51:14","modified_gmt":"2026-01-08T13:51:14","slug":"cma-begins-full-review-of-kingsmill-owners-planned-takeover-of-bread-rival-hovis-associated-british-foods","status":"publish","type":"post","link":"https:\/\/microvibenews.com\/?p=10503","title":{"rendered":"CMA begins full review of Kingsmill owner\u2019s planned takeover of bread rival Hovis | Associated British Foods"},"content":{"rendered":"

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The UK competition watchdog has ramped up its investigation into a \u00a375m takeover deal that will result in the owner of Kingsmill snapping up its sliced bread rival Hovis.<\/p>\n

Associated British Foods (ABF), which also owns the Primark clothing chain, confirmed plans to buy Hovis<\/a> from its private equity owners Endless in August, combining the UK\u2019s second and third largest bread brands.<\/p>\n

The Competition and Markets Authority<\/a> (CMA) has now launched an in-depth investigation into whether the deal could harm consumers, potentially leading to reduced choice and higher prices on grocery shelves. It follows a request by the two companies to fast-track the review of the merger.<\/p>\n

ABF said in a statement: \u201cOur priority is to achieve regulatory clearance as efficiently as possible and we are pleased to have agreed with the CMA that we will fast-track to the in-depth and detailed final phase of their merger review. We will continue to work constructively with the CMA to demonstrate the benefits of the transaction.\u201d<\/p>\n

The news came as ABF issued a profit warning, saying it expected adjusted operating profit for the wider group to be below last year. This sent the group\u2019s shares down by as much as 11% on Thursday morning.<\/p>\n

The CMA, which initially raised concerns in December, said on Thursday it was launching its \u201cphase 2\u201d investigation to assess whether the takeover would result in a \u201csubstantial lessening of competition\u201d for mass-produced baked goods.<\/p>\n

The regulator will ultimately have to decide whether the brands face sufficient rivalry on price and quality from supermarkets\u2019 own labels and other options, as well as the UK\u2019s market leader, Warburtons, which accounts for more than a quarter of packaged sliced bread sales<\/p>\n

August\u2019s takeover announcement came amid a drop in popularity of mass-produced sliced bread and baked goods, as customers spurn ultra-processed foods<\/a> and turn to more artisanal loafs.<\/p>\n

The CMA\u2019s investigation is due to run until at least the end of June, slowing the pace of the bread merger. Hovis directors said in accounts published this summer that they thought any deal was \u201cunlikely to be concluded\u201d before September 2026, and that reviews were likely continue until at least then.<\/p>\n

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ABF noted in a trading update on Thursday that weak consumer confidence in the UK and Europe had weighed on sales, particularly at Primark, which were lower than expected over the past four months. While Primark gained market share, ABF said it expected sales growth at the clothing brand to be in the low single digits in the first half of the year.<\/p>\n

Its chief executive, George Weston, said: \u201cIn a challenging consumer environment, our focus is on factors within our control, including initiatives now under way in Europe aimed at improving performance \u2026 While we expect the tough trading conditions to continue in the short term, we remain confident in the overall prospects for the group.\u201d<\/p>\n<\/div>\n

#CMA #begins #full #review #Kingsmill #owners #planned #takeover #bread #rival #Hovis #British #Foods<\/p>\n","protected":false},"excerpt":{"rendered":"

The UK competition watchdog ha… <\/p>\n","protected":false},"author":1,"featured_media":10504,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts\/10503"}],"collection":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10503"}],"version-history":[{"count":0,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts\/10503\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/media\/10504"}],"wp:attachment":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10503"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10503"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10503"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}