Kingsmill owner to buy Hovis to make UK bread giant
Summary
Associated British Foods (ABF), the owner of Kingsmill, plans to buy its rival, Hovis, to become the biggest bread brand in the UK. The merger aims to make both companies more profitable by cutting costs, but the workers' union is concerned about potential job impacts. The deal needs approval from the UK's competition regulator to proceed.Key Facts
- Associated British Foods (ABF) plans to buy Hovis and merge it with Kingsmill.
- The merger aims to create the UK's largest bread brand.
- ABF also owns other brands including Primark, Ryvita, and Twinings.
- Both Kingsmill and Hovis have been losing money and hope to become profitable through the merger.
- The Unite union, representing Hovis and Kingsmill workers, is worried about job security and pay.
- The deal requires approval from the Competition and Markets Authority.
- Changing consumer preferences, such as a shift towards speciality breads and low-carb diets, have affected bread sales.
- Hovis was bought by the private equity firm Endless in 2020.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.