ABF-Hovis deal's UK approval shows buyer-side failing-firm defense is viable
By Jon Menon ( June 16, 2026, 15:33 GMT | Comment) -- Merger approval for two big UK breadmakers is a rare example of an acquirer's potential exit from the market proving central to deal clearance. Allowing Associated British Foods' loss-making Allied Bakeries to buy Hovis Group shows the UK competition watchdog will accept a failing-firm argument even where the struggling business belongs to a financially strong parent — if there is persuasive evidence that ongoing support is unlikely.UK antitrust approval for Associated British Foods to buy rival bread maker Hovis Group came in a rare situation in which potential exit from the market by the acquirer, rather than the target, was central to the decision to clear the deal....
Prepare for tomorrow’s regulatory change, today
MLex identifies risk to business wherever it emerges, with specialist reporters across the globe providing exclusive news and deep-dive analysis on the proposals, probes, enforcement actions and rulings that matter to your organization and clients, now and in the longer term.
Know what others in the room don’t, with features including:
- Daily newsletters for Antitrust, M&A, Trade, Data Privacy & Security, Technology, AI and more
- Custom alerts on specific filters including geographies, industries, topics and companies to suit your practice needs
- Predictive analysis from expert journalists across North America, the UK and Europe, Latin America and Asia-Pacific
- Curated case files bringing together news, analysis and source documents in a single timeline
Experience MLex today with a 14-day free trial.