Bakery confirms talks over merger with Hovis to create Britain’s biggest breadmaker

The owner of Hovis, which has a bakery in Avonmouth, is in talks with Allied Bakeries owner Associated British Foods (ABF) over a possible historic merger of the two iconic bread brands.

Speculation had grown over the weekend that Kingsmill, owned by Allied Bakeries and Hovis, backed by private equity firm Endless, will be combined following a long decline in supermarket loaf sales amid competition from speciality bakers and a move to more low carb diets.

The merger would create Britain’s biggest breadmaker. Hovis employs around 300 people at its site in Avonmouth.

However, analysts have warned the move could come under scrutiny of the Competition and Markets Authority. Endless acquired the iconic bakery brand, Hovis, back in 2020 for an undisclosed price.

Hovis was created in 1890 following aa national competition held to replace the original ‘Smith’s Patent Process Germ Flour’ name. A prize of £25 was offered to the winner. The winner was Herbert Grime, suggesting the name ‘Hovis’, from the Latin “hominis vis” meaning “strength of man”.

Allied Bakeries was founded in 1935 by Willard Garfield Weston, part of the family which continues to control ABF.

In a statement APB responded saying that it noted media speculation and confirmed that it is in discussions with Endless LLP regarding a potential transaction. However, there is no certainty that a transaction will be concluded nor as to the terms of such a transaction.

The group added: “As stated in our interim results announcement on 29 April 2025, Allied Bakeries continues to face a very challenging market. We are evaluating strategic options for Allied Bakeries against this backdrop, and we remain committed to increasing long-term shareholder value. A further announcement will be made as and when appropriate.”