1029 GMT - A potential merger between AB Foods' Allied Bakeries and Endless' Hovis would be positive, as the combination would provide scale necessary to survive a challenging market, Panmure Liberum says after AB Foods confirmed talks exploring the transaction. The U.K. bakery market is characterized by an intense competition for volumes and a price-sensitive consumer backdrop, analysts Anubhav Malhotra and Wayne Brown write. Therefore, a potential merger could unlock significant cost efficiencies needed for the turnaround of both businesses, they say. While the deal would be in line with the long-term interests of all stakeholders, given that both companies might struggle to remain viable independently, a merger between the second and the third largest companies in the sector is likely to attract regulatory scrutiny, they say. AB Foods shares are down 0.7% at 20.36 pounds. (michael.susin@wsj.com)
(END) Dow Jones Newswires
May 06, 2025 06:34 ET (10:34 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。