UK Competition Watchdog Cracks Down on Hovis Takeover, Citing Loss of Consumer Choice and Higher Prices.
The UK's Competition and Markets Authority (CMA) has stepped up its probe into a planned £75m takeover of Hovis by Associated British Foods (ABF), the owner of Kingsmill bread brand. The proposed acquisition would create a duopoly in the UK's sliced bread market, combining ABF's dominant Warburtons brand with Hovis.
The CMA investigation will examine whether the deal could lead to reduced consumer choice and higher prices on grocery shelves. The regulator is concerned that the resulting market dominance by Warburtons and Hovis would limit competition and potentially inflate prices.
ABF, which also owns Primark, confirmed plans to buy Hovis from private equity owners Endless in August. However, the company's shares plummeted as much as 11% on Thursday after it issued a profit warning, citing weak consumer confidence in the UK and Europe.
The CMA will conduct an in-depth investigation to determine whether the takeover would lead to a "substantial lessening of competition" for mass-produced baked goods. The regulator is due to complete its review by at least June 2024, although Hovis directors have expressed skepticism about the deal being finalized before September 2026.
The UK's market leader, Warburtons, already controls more than a quarter of packaged sliced bread sales, sparking concerns that the combined entity would dominate the market and limit consumer choice. The CMA is therefore closely monitoring the situation to ensure that consumers remain protected from potential price hikes and reduced options.
The UK's Competition and Markets Authority (CMA) has stepped up its probe into a planned £75m takeover of Hovis by Associated British Foods (ABF), the owner of Kingsmill bread brand. The proposed acquisition would create a duopoly in the UK's sliced bread market, combining ABF's dominant Warburtons brand with Hovis.
The CMA investigation will examine whether the deal could lead to reduced consumer choice and higher prices on grocery shelves. The regulator is concerned that the resulting market dominance by Warburtons and Hovis would limit competition and potentially inflate prices.
ABF, which also owns Primark, confirmed plans to buy Hovis from private equity owners Endless in August. However, the company's shares plummeted as much as 11% on Thursday after it issued a profit warning, citing weak consumer confidence in the UK and Europe.
The CMA will conduct an in-depth investigation to determine whether the takeover would lead to a "substantial lessening of competition" for mass-produced baked goods. The regulator is due to complete its review by at least June 2024, although Hovis directors have expressed skepticism about the deal being finalized before September 2026.
The UK's market leader, Warburtons, already controls more than a quarter of packaged sliced bread sales, sparking concerns that the combined entity would dominate the market and limit consumer choice. The CMA is therefore closely monitoring the situation to ensure that consumers remain protected from potential price hikes and reduced options.
they gotta protect our bread freedom lol abf already owns warburtons, it's like they're trying to strangle competition in the market what if we didn't have a lot of bakeries popping up left and right? wouldn't we be missing out on some amazing flavors and options? cma needs to keep an eye on this one, consumers deserve better 
. And don't even get me started on Warburtons - already dominating the market with their Warburtons brand, but now they're trying to buy Hovis too? That's just not right in my book 
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. The CMA's gotta keep an eye on this one, for sure 
. We need to make sure that consumers are protected from all this corporate shenanigans 
they cant let warburtons take over them too, thats not right! 
gotta be worried about this takeover, you know? it's like they're trying to muscle in on our grocery choices, just 'cause one company already has a stranglehold on the market 
. i'm all for ABF's profits or whatever, but let's not forget about us consumers 
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. but seriously tho, if the CMA cracks down on this deal, we might actually get some decent options back in the market. fingers crossed no price hikes, though - my wallet's already low-key crying about inflation 
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... And Warburtons already has a huge market share so i think this acquisition might just lead to higher prices for us consumers 
i mean, i get it, consumer choice is key but come on, warburtons already dominates the market like what's next? 
a world where we only have 2 options for bread?? no thanks 
higher prices and fewer options? no thanks! interesting that the CMA is keeping an eye on this, fingers crossed they can stop the deal from happening 
That would be a nightmare! We need to keep an eye on this situation and make sure our voices are heard 
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! I mean, who needs competition in bread anymore? It's like they're trying to stifle innovation or something. The thought of Warburtons and Hovis dominating the market is just terrifying... like, what's next? They'll own all the supermarkets too 
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. It's just so convenient that Hovis' new owners are having financial troubles and all the CMA can think of is ' maybe we should investigate this takeover even more'. I'm not saying the CMA is being slow or anything... but 6 years to review? That's, like, a whole decade 
. Can't wait for the thrilling conclusion when they finally figure out whether Warburtons and Hovis will start charging us per breath we take 
gotta keep an eye on this one 
. I'm keeping my eye on this one... 