Bread market shake-up as ABF to acquire Hovis —
Associated British Foods (ABF) has agreed to acquire the Hovis bread brand from Endless, the private equity firm that took control in 2020. The deal will fold Hovis into ABF’s Allied Bakeries division, owner of Kingsmill, Sunblest, and Allinson’s. Though terms remain undisclosed, analysts estimate the transaction at around £75 million, pending regulatory approval.
The acquisition would create the UK’s largest packaged bread supplier, with potential cost synergies of up to £55 million. The Competition and Markets Authority is expected to examine the deal closely given its potential impact on competition in the packaged bread market. ABF has framed the move as a growth opportunity, while unions have warned of possible redundancies.
Centrica and ECP buy Isle of Grain terminal —
Centrica and Energy Capital Partners will acquire the Isle of Grain LNG terminal from National Grid for £1.5 billion, in a 50-50 joint venture. The terminal, located in Kent, is Europe’s largest LNG import facility and currently supplies about 20 per cent of the UK’s gas. With planned expansion, that figure could rise to one-third of demand.
The transaction fits Centrica’s strategy of pivoting towards critical energy infrastructure investments, alongside its stake in the Sizewell C nuclear project. For National Grid, the sale supports its £60 billion investment programme in electricity and gas networks. Regulatory approval is pending.
Wealth management consolidation with Evelyn Partners sale exploration —
Evelyn Partners, the wealth management group formed from the combination of Bestinvest, Tilney, and Smith & Williamson, is being prepared for a sale valued at approximately £2.5 billion. Private equity owners Permira and Warburg Pincus have appointed Evercore to advise, targeting banks such as NatWest and RBC, along with global financial sponsors.
The decision to pursue a sale, rather than the IPO previously considered, reflects the high level of interest in UK wealth management assets. Rising compliance costs and demand for diversified revenue streams are driving banks and asset managers towards acquisition strategies in this space.
CMA clears Boeing’s acquisition of Spirit AeroSystems —
The UK Competition and Markets Authority has approved Boeing’s $4.7 billion acquisition of Spirit AeroSystems, concluding its initial review without launching a more extensive investigation. Spirit, a key supplier of aerostructures to Boeing and Airbus, has been independent for nearly two decades.
The deal consolidates a crucial segment of Boeing’s supply chain and is expected to help address manufacturing challenges. The CMA’s decision comes ahead of the 28 August statutory deadline, clearing the way for the transaction to progress to completion.
EG Group sheds Italian and Australian operations —
EG Group, controlled by the Issa brothers, has announced the sale of its Italian division to a consortium of investors and its Australian business to Ampol. The Italian transaction was disclosed on 12 August, while the Australian deal, expected to close by mid-2026, was announced on 14 August.
These disposals form part of EG Group’s strategy to reduce debt and refocus its portfolio. The moves could position the business for a public listing or other strategic transactions, as previously discussed by the group’s leadership.
Bottom line —
This week’s UK M&A activity paints a picture of a market in which strategic intent outweighs sector boundaries. Domestic acquirers are leaning into consolidation plays in mature industries, while infrastructure and energy assets continue to draw capital for their defensive qualities and long-term yield potential. The mix of deals — from ABF’s packaged bread expansion to Centrica’s LNG terminal purchase — reflects an investor focus on assets that offer control, operational resilience, and predictable cash flows.
The concurrent movement in financial services and aerospace adds another layer: regulatory gatekeeping remains a decisive factor, yet high-value transactions are still finding pathways to clearance when strategic alignment is clear. Meanwhile, divestments such as EG Group’s illustrate how selective portfolio pruning is becoming an active M&A strategy in its own right, enabling companies to reduce debt and refocus on core markets.
Viewed together, these transactions suggest a market that is neither hesitant nor indiscriminate — but one where acquirers are matching capital deployment to assets with clear, defensible advantages in an uncertain macroeconomic environment.
Key takeaways —
- Domestic consolidation remains a strong theme. The ABF–Hovis deal and Evelyn Partners sale both show UK buyers targeting scale advantages in established markets.
- Infrastructure assets are in high demand. Centrica’s LNG purchase reflects a pivot to long-term, essential-service investments with predictable returns.
- Strategic pruning is reshaping portfolios. EG Group’s disposals highlight how businesses are streamlining global operations to strengthen core markets.
Stay ahead of the curve with Business Quarter’s weekly M&A briefing, a concise, authoritative roundup of the biggest deals, strategic plays, and market-moving partnerships.
Sign up now to get each week’s summary straight to your inbox.
