UK Watchdog Flags Concerns Over AB Foods Hovis Deal
UK regulators flagged competition issues in Northern Ireland over the AB Foods Hovis deal. The merger was cleared in Great Britain to prevent Allied Bakeries closing.
The United Kingdom competition watchdog has flagged concerns regarding the acquisition of Hovis by Associated British Foods plc, citing potential competition issues in Northern Ireland. While the deal faces scrutiny in that region, the regulator has provisionally cleared the transaction in Great Britain.
The provisional clearance for the British market came after an investigation found that Allied Bakeries, a division of Associated British Foods, would likely have been forced to close if the merger did not proceed. The watchdog concluded that the closure of the business would represent a greater loss to market competition than the acquisition itself.
