The Competition and Markets Authority (CMA) has opened a phase 2 investigation into the proposed acquisition of Hovis Group Limited by Associated British Foods plc (ABF), through its wholly owned subsidiary, ABF Grain Products Limited. The acquisition agreement, formalized in a Share Purchase Agreement dated 15 August 2025, will see ABF acquire Hovis from its current owner, Endless LLP.
On 23 December 2025, the parties requested a fast-track reference under the Enterprise Act 2002, seeking an in-depth review of the merger. After reviewing the request, the CMA concluded that the conditions for a fast-track reference were met and referred the case to its chair for the constitution of an investigative group. This group is tasked with assessing the deal and reporting by 24 June 2026.
The investigation will examine whether the proposed acquisition would create a relevant merger situation under UK competition law and whether it is likely to result in a substantial lessening of competition in any UK market for goods or services. The CMA will scrutinize the potential impacts on consumers, suppliers, and the broader market, reflecting its commitment to maintaining healthy competition and protecting market dynamics.
The CMA’s decision to proceed with a phase 2 investigation follows the Final Merger Notice submitted on 18 December 2025 and demonstrates its continued vigilance in ensuring that major mergers do not compromise competition or consumer interests in the UK.