March 26 (Reuters) - A British watchdog said on Thursday Associated British Foods' acquisition of Hovis has raised competition concerns in Northern Ireland, while provisionally clearing the deal in
ABF's Hovis takeover clears Britain review, flagged in Northern Ireland
Competition Review of ABF's Acquisition of Hovis
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Regulatory Findings and Provisional Clearance
March 26 (Reuters) - 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.
Details from the CMA Interim Report
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.
Impact on Allied Bakeries and Market Competition
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.
Company Statements and Next Steps
"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.
Background of the Acquisition
Primark-parent ABF, which also owns the Kingsmill, Allinson's, and Sunblestbrands, announced its deal to buy 135-year-old Hovis for an undisclosed sum in August last year.
Remedy Proposal Deadline
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.
(Reporting by Yamini Kalia in Bengaluru; Editing by Sherry Jacob-Phillips and Sumana Nandy)
