The deal between ABF and Hovis owner Endless LLP, which was agreed in August 2025, was mooted to be worth around £70m, although the financial details were not disclosed.
The phase one investigation will conclude whether the CMA will start in-depth proceedings, known as a phase two investigation. The CMA said that it will announce its decision on 19 February 2026.
The competition watchdog launched an investigation into the deal in September asking for comments as part of its information gathering process.
“This formal step is an important milestone and follows ABF working constructively with the CMA to outline the challenges and changes taking place in the UK’s bakery sector,” a spokesman from ABF said.
“ABF will continue to work closely with the CMA to ensure this case is run as efficiently as possible and to demonstrate why this transaction will help to create a more sustainable competitor that is better able to invest, innovate and deliver for customers.”
If this Phase One investigation raises any competition issues then it will progress to Phase Two where remedies could be sought to ensure fair competition.
In the Greencore acquisition of Bakkavor, the CMA raised concern about competition in the supply of own label chilled sauced. To alleviate concerns the businesses offered to sell Greencore’s only chilled sauce and soups manufacturing plant in Bristol.
The bakery market has been under major pressure in recent years with changes in consumer habits, rising costs and an increasingly competitive market.
Hovis is owned by private equity firm Endless LLP and has seen losses mount in recent years, while Associated British Foods admitted that profitability at its UK bakery business Allied Bakeries has been challenged by a decline in demand for pre-sliced, packaged bread.
Recently, Associated British Foods (ABF) has said it is considering separating its food business and fashion chain Primark “with a view to maximising long-term value.”
