The Competition and Markets Authority (CMA) has opened a Phase 1 investigation into Associated British Foods’ (ABF) acquisition of Hovis.

The competition watchdog released an official statement today (19 December) outlining the decision to launch the investigation and the expected dates for the next steps.

ABF operates Kingsmill-owner Allied Bakeries and announced the decision to acquire Hovis earlier this year, which would lead to the merger of two of the UK’s biggest bread manufacturing companies.

This deal raised concerns about unfair competition in the UK bread and bakery sector.

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In September the watchdog launched an open consultation process to receive feedback from interested parties on whether the merger would create unfair competition.

The regulator will look into whether the deal could lead to higher market prices, a reduced choice and problems for suppliers after completion.

Moving forward, the CMA will decide whether to approve the merger or launch a further investigation in a phase 2 probe on 19 February 2026.