UK: Allied Bakeries, Hovis in merger talks

Associated British Foods (ABF) has confirmed it is in discussions with private equity firm Endless, the owner of Hovis, regarding a possible merger with ABF’s Allied Bakeries business, according to a FoodBev report.

In a statement, ABF noted that Allied Bakeries “continues to face a very challenging market”, adding: “We are evaluating strategic options against this backdrop and remain committed to increasing long-term shareholder value. A further announcement will be made as and when appropriate”.

If a deal were to go ahead, it would potentially create a new leader in the UK packaged bread market by uniting the Kingsmill and Hovis brands under common ownership.

Any potential deal is likely to be scrutinized by UK competition regulators given the market share of the combined business, FoodBev noted.

Source: FoodBev