Associated British Foods has received approval to acquire Hovis, following an investigation by the UK’s Competition and Markets Authority (CMA). The company, which owns Allied Bakeries and the Kingsmill brand, reached an agreement in August to purchase Hovis from private equity firm Endless.

The CMA’s review focused on concerns that the merger might limit competition in the UK bread market, potentially leading to reduced consumer choice or higher prices. However, the regulator concluded that Allied Bakeries would likely exit the market entirely if the acquisition were blocked, a move that could have a more significant impact on competition.

This decision clears the way for Associated British Foods to expand its footprint in the bread sector, consolidating two well-known brands under its ownership. The CMA's assessment indicates that the combination is unlikely to substantially lessen competition or harm consumers in the UK bread market.