connecting every sector of the UK Food Industry

CMA Fast-Tracks ABF’s Hovis Deal Into Phase 2 Investigation

The UK competition regulator has escalated Associated British Foods’ proposed acquisition of Hovis into an in-depth Phase 2 investigation, using a fast-track process requested by the merging parties.

The proposed deal would see ABF — owner of Allied Bakeries, which produces Kingsmill as well as brands including Allinson’s and Sunblest — acquire the Hovis business from private equity owner Endless. Hovis is one of the UK’s best-known bread brands, founded in the 1880s, with national manufacturing and distribution operations serving major grocery and convenience retailers.

What the regulator is examining

Phase 2 investigations are the Competition and Markets Authority’s most detailed form of merger review. They are designed to test whether a deal could lead to a “substantial lessening of competition” — which can impact consumer outcomes such as:

• pricing and promotional intensity

• product choice and quality

• service levels and on-shelf availability

• innovation and investment

• competitive pressure in retail supply negotiations
  
  

The CMA has stated that moving to Phase 2 under a fast-track route does not, in itself, represent a formal finding on competition issues. Instead, it allows the investigation to move directly to an independent inquiry group for a deeper examination of the evidence.

Why the bread category is under the spotlight

Packaged sliced bread remains a major household staple, but it is also a high-volume, tight-margin category facing structural change. Consumer demand has been shifting — with growth in bakery-style loaves, speciality products and alternative options, alongside greater scrutiny of processed foods. That backdrop raises the stakes for both brand owners and retailers as they compete for shelf space and shopper loyalty.

In market-share terms, Hovis is estimated to hold around 18%of the UK pre-sliced packaged bread market. ABF’s Allied Bakeries is estimated at around 6%. The largest player, Warburtons, is estimated at around 28%. Combined, Hovis and Allied Bakeries would represent roughly 24%, which would still leave Warburtons as market leader — but would create a larger consolidated competitor among national branded suppliers.

What ABF and Hovis are saying

ABF has indicated that it is seeking regulatory clearance as efficiently as possible and intends to work constructively with the CMA. The group’s position is that bringing the businesses together could create a more sustainable and investable bakery operation, supporting innovation and stronger competition in the category.

Hovis has also indicated it will continue working with the CMA to secure clearance, while operating as normal during the review process.

Leadership and timing

Hovis has experienced senior leadership change during the deal period. In September 2025, Hovis confirmed its CEO, Jon Jenkins, was stepping down after three years in the role.

The CMA’s Phase 2 investigation is now underway and will be conducted by an independent inquiry group. The statutory deadline for the regulator’s decision is 24 June 2026.

What happens next

Phase 2 outcomes typically fall into three broad categories:

1. clearance (the deal can proceed)

2. clearance with remedies (commitments to address competition concerns)

3. prohibition (the deal cannot proceed)
   
   

Remedies, where required, can vary widely depending on the competition issues identified — and can include behavioural commitments or structural solutions.

UK Food Council will continue monitoring this inquiry and the implications for manufacturers, retailers, and consumers across the bakery and grocery supply chain.

HOME   ABOUT   INITIATIVES   INSIGHTS   MEMBERSHIP   PARTNERSHIP   EVENTS   CONTACT   LOGIN

The UK Food Council works in partnership with the United Nations Food and Agriculture Organisation (FAO) to strengthen food systems, promote sustainability, and advance food security across the UK and beyond. We invite individuals, businesses, and organisations in the food industry to join us in building a more resilient and sustainable future. Together, we can improve food access, support innovation, and ensure food security for generations to come.

UK Food Council Insight — Register Free

The UK Food Council hosts exclusive executive events, connecting food industry leaders through focus groups, roundtables, seminars, and conferences.

Privacy Policy I Terms and Conditions I Contact Us

The following creatives, photographers and production teams assisted in the making of this website: Tima Miroshnichenko I Cottonbro I Michael Gaida I Peter H I Ralf Siebeck I Wilfried Pohnke I Achim Scholty I Miguel Á. Padriñán I Patrick Robert Doyle I Milan Csizmadia I Raphaël Tomi-Tricot I Bianca Lucas I Dmitry Vechorko I Egor Vikhrev I Jonathan Farber I Craig Whitehead I Ruslan Gamzaliev I Ryoji Iwata I Constantin Lordache I Ben White I NASA I Matt Moloney I Kaboompics I S Migaj I Fauxels I Tranmautritam I Brian McGowan I Richard Gatley I Ron Lach I Andrea Piacquadio I Alexander Shatov I Amy Hirschi Kaleidico I Tranmautritam I Helena I Alex GorbiI Alexander Andrews I Deksha Pahariya I Jack Niles I Mitchell Luo I Edmond Dantès Jakob Owens I Monstera I Bulkan Evciman I Ruvim Miksanskiy I KoolShooters I Kévin et Laurianne Langlais I Ketut Subiyanto I Hulki Okan Tabak I Huy Phan I Matheus I Cenali Egor Kamelev I Christian Heitz I Singkham I Shvets Production I Bruno Martins I Dani Hart I Matheus Bertelli I James Watt I Mali Maeder I Christina & Peter I Anthony I Anna Tarazevich I Kevin Tanner Dan Rooney I Rene Terp I Cihan Yüce I Davide Baraldi I Arno Senoner I Matt Seymour I Tanya Barrow I Nick Fewings I Apurv Das I Taras Chernus I Hailey Tong I Yogesh Pedamkar I Jakob Cotton I
Christopher Eden I Aurelien Chateaudon I Michael-Carrasco-Flores I Drew Gilliam I Victor Clime I

© 2026 UK Food Council. All rights reserved. Registered in England and Wales. This site is protected by reCAPTCHA, and the Google Privacy Policy and Terms of Service apply.

Partners: Amadeus IT Group I Cognito I Ingenious I Smithfields AIT I SoftBank I Rothamere I Economist

#farming #food #foodproduction #foodservice #grocery #restaurant #technology #logistics #sustainability #foodsupply #foodmanufacturing #pos #restaurants # #hunger #menus #supplychain #foodsecurity 

Copyright © 2002 - 2026 UK Food Council. All rights reserved.