The Competition and Markets Authority has provisionally approved the takeover of Hovis by ABF bakeries, owner of Sunblest.

The transaction covers Hovis brands including Ormo.

The CMA had previously required ABF to sell its Northern Ireland bakery business to a third party.

Following further review, the authority determined that no buyer was available to acquire and operate the business independently.

In March the CMA had identified concerns over market concentration, with the merged entity controlling 80% of pancake supply, 60% of soda farl sales and nearly 50% of potato bread sales in Northern Ireland.

The regulator reversed its position after concluding that the loss of competition would occur whether or not the merger proceeded.

The authority has now aligned its Northern Ireland decision with its earlier clearance of the merger in Great Britain.