The Competition and Markets Authority (CMA) has opened an initial consultation on Associated British Foods’ (ABF) proposed acquisition of Hovis Group.

While “not yet a formal investigation”, the watchdog is inviting comments from interested parties on whether the deal could reduce competition in the UK bread and bakery sector.

ABF, whose food division includes Kingsmill-owner Allied Bakeries, agreed to acquire Hovis earlier this year in a move that would bring two of Britain’s biggest bread makers under the same parent company.

Subscribe to Grocery Gazette for free

Sign up here to get the latest grocery and food news each morning

The CMA’s “invitation to comment” marks the first step in its merger inquiry process, ahead of a potential Phase 1 investigation.

The regulator will consider whether the deal could lead to higher prices, reduced choice, or harm to suppliers if the two rivals combine. It will then decide whether to clear the merger or proceed to a more detailed Phase 2 probe.

The CMA said: “We are inviting views from any interested party on the potential impact of the transaction. This information will help inform our initial assessment.”

It added that submissions must be made by 2 October 2025.