6th May 2025 08:35
(Alliance News) - Associated British Foods PLC on Tuesday said it is in talks with the owner of Hovis as it mulls options for its Allied Bakeries division.
Last Tuesday, the London-based food processing and clothing retailing business said it was "evaluating" strategic options for Allied Bakeries as it continues to face a "very challenging market."
On Monday, AB Foods confirmed press reports that it is in discussions with Endless LLP regarding a potential transaction.
"We are evaluating strategic options for Allied Bakeries," the firm said in a statement.
Endless LLP, the Leeds-based private equity company, owns bakery brand Hovis.
Allied Bakeries owns the bread brands Kingsmill, Allinson's, and Sunblest. It also produces own-label bakery ranges for major UK supermarkets.
On Saturday, Sky News said AB Foods and Endless have been involved in prolonged discussions about a combination of the two bakery businesses.
Sky said AB Foods is also said to be exploring other options for the future of Allied Bakeries which do not include a deal with Hovis.
Shares in AB Foods were 1.2% higher at 2,075.00 pence each in London on Tuesday morning.
By Jeremy Cutler, Alliance News reporter
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