Kingsmill owner cleared to create UK’s biggest bread brand with Hovis takeover
Summary
The UK competition watchdog has approved a £75 million deal for Associated British Foods (ABF), the owner of Kingsmill bread, to buy Hovis. The regulator said the deal does not harm competition because without it, ABF’s bakery business might leave the UK market, which would hurt bread supplies, especially for low-income people.Key Facts
- ABF owns Allied Bakeries, which produces Kingsmill, Allinson’s, and Sunblest bread brands.
- ABF plans to buy Hovis, which owns brands like Mother’s Pride and Ormo, in a £75 million deal.
- The Competition and Markets Authority (CMA) investigated the deal and found no competition problems.
- CMA said if the deal failed, Allied Bakeries might leave the UK market entirely.
- Bread demand in the UK is falling, while costs for energy, wheat, and distribution are rising.
- Allied Bakeries has made losses for 14 years due to lower sliced bread popularity and competition from cheaper supermarket brands.
- Hovis’s pre-tax losses rose from £3.6 million to £4.7 million in a year.
- ABF also owns Primark but plans to spin it off next year.
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.