The takeover of Hovis by Kingsmill owner Associated British Foods (ABF) has been cleared by UK regulators.
The Competition and Markets Authority (CMA) said ABF could have pulled out of the UK bakery sector altogether if the merger were not to take place.
ABF, which runs the Allied Bakeries business, struck a deal to buy Hovis and merge it with its own bread operation last August.
It agreed to buy the brand from private equity firm Endless, with plans to then combine the production and distribution activities of Hovis and Allied Bakeries, which also makes the Allinson’s brand.
In December, the competition regulator said it would investigate the takeover amid potential concerns over the new group’s share of the bread market.
