Britain’s competition regulator on Thursday flagged competition risks in Northern Ireland over Associated British Foods’ acquisition of rival Hovis, while provisionally clearing it in Britain after finding ABF’s Allied Bakeries would otherwise close.
The Competition and Markets Authority (CMA) said in an interim report that an alternative buyer would have kept the business competing with bread maker Hovis in Northern Ireland.
The regulator also found that Allied Bakeries – which owns the Kingsmill brand – would shut down if the merger did not proceed, meaning competition between the two bakery suppliers would be lost in Great Britain regardless of the deal’s outcome.
“We will continue to engage constructively with the CMA, including with regard to our Northern Ireland business, so that we can achieve regulatory clearance as efficiently as possible,” ABF said in a statement.
Primark-parent ABF, which also owns the Kingsmill, Allinson’s, and Sunblest brands, announced its deal to buy 135-year-old Hovis for an undisclosed sum in August last year.
The companies have until April 9 to submit a remedy proposal to address the CMA’s concerns around the supply of plant bread, pancakes, potato farls and soda farls in Northern Ireland.
Source: Reuters.com