Breadmakers' merger deal on the table after months of talks

HISTORIC breadmakers Hovis and Kingsmill are poised for a landmark merger, with their respective owners expected to seal the deal following months of negotiations.

- SAMUEL NORMAN

Kingsmill's parent company Allied Bakeries, which falls under London-listed Associated British Foods (ABF), alongside Hovis could reap annual cost savings of up to £50m through the proposed union.

According to Sky News, the mooted arrangement would see ABF snap up Hovis for £75m.

This would wrest control of the bread manufacturer from private equity owners Endless, culminating months of talks between the investment firm and ABF.

Industry insiders suggest a formal agreement could materialise by the close of next week, though sources cautioned Sky about pinning down exact timelines given the deal's intricate nature.