The UK's Competition and Markets Authority (CMA) has approved Associated British Foods' (ABF) £75m acquisition of Hovis. The CMA concluded the deal poses no competition concerns, as Allied Bakeries (AB), ABF's bakery arm, would likely exit the UK market if the takeover failed.
Associated British Foods has confirmed plans to demerge Primark from its food business (containing Twinings, Kingsmill and Patak's) by the end of 2027, despite warning that the Middle East conflict may impact consumer spending. Group sales fell 2% to £9.46bn in the first half, with pre-tax profits down 9% to £632m. Primark's like-for-like sales declined 2.7% globally, though UK sales rose while mainland Europe fell 5.6% due to weak consumer confidence.
Associated British Foods is poised to announce plans for a demerger of its Primark fashion business this week, as the group faces mounting pressures across both its fashion and food divisions. The potential split follows a strategic review announced in November and comes amid disappointing trading, with flat annual sales and falling profits. The Middle East conflict is expected to add further cost pressures, while the company also grapples with a competition regulator investigation into its planned bakery merger with Hovis.
