UK watchdog to launch in-depth probe of AB Foods' purchase of Hovis

Britain's Competition and Markets Authority has fast-tracked an in-depth review of Associated British Foods' planned purchase of the Hovis bread brand, and ABF said it will work constructively with the regulator.

Britain's competition regulator has moved its review of Associated British Foods' planned purchase of Hovis into a detailed, in-depth phase. The deal, announced in August, would add Hovis to ABF's portfolio after Endless agreed to sell the 135-year-old bread brand. The regulator said it would fast-track the merger review to assess competition concerns. ABF said it will continue to work with the Competition and Markets Authority to demonstrate the transaction's benefits. Key details: - The Competition and Markets Authority (CMA) has launched a phase 2, in-depth investigation of the takeover. - ABF announced the deal in August and described achieving regulatory clearance as a priority in a company statement. - The transaction involves Hovis being sold by private equity owner Endless; some reports put the takeover value at about £75m. - The article mentions ABF issued a profit warning and said adjusted operating profit would be below last year, and that its shares fell by as much as 11% on the news. - The CMA's review will consider whether the merger could affect competition, including rivalry from supermarket own-label breads and market leader Warburtons. - The regulator's investigation is due to run until at least the end of June, and Hovis directors have said a deal was unlikely to be concluded before September 2026. Summary: The CMA's phase 2 review will assess whether the takeover would substantially lessen competition and could affect consumer choice and prices in the packaged sliced bread market. The probe is scheduled to run until at least the end of June, and company filings indicate the deal may not conclude before September 2026. Undetermined at this time.