# ABF’s Hovis takeover deal given go-ahead by competition watchdog

By Dan Coatsworth — 2026-06-16

Dan Coatsworth, head of markets at AJ Bell, said: “You might have expected Associated British Foods to rise like the perfect loaf on news that the merger of its Allied Bakeries business with Hovis had been cleared by regulators, but negative analyst commentary helped sour things for the share price.

“The deal, announced last August, had attracted the attention of the Competition and Markets Authority (CMA).

“The conclusion seems to have been that without giving it the green light Allied Bakeries, which owns the Kingsmill brand, would have exited the market entirely.

“While the hope is that this combination can prompt a reversal in fortunes, it also highlights the fact this part of the business is not the most significant in terms of the overall destiny of Associated British Foods.

“A research note from investment bank Citigroup that raised concerns about the trajectory of the wider business overshadowed any relief at the Hovis deal being waved through.

“The worries are centred around a slowdown in the Primark business, pressure on margins across its branded grocery products as people trade down to cheaper unbranded alternatives, and depressed sugar prices.

“This was enough to put investors in a gloomy mood ahead of the company’s upcoming trading update on July 1.”

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