AB Foods Confirms Talks With Endless on Future of Bread Unit (2)

Associated British Foods Plc said it’s talking to investment firm Endless LLP about a potential combination of their Kingsmill and Hovis brands, two of the UK’s best-known bread producers.

The British conglomerate is evaluating strategic options for its Allied Bakeries unit, Kingsmill’s immediate parent, amid what it called “a very challenging market.” There is no certainty that a deal would be reached, it said Tuesday.

Shares of AB Foods, which are down more than 20% over the past 12 months, rose as much as 1.4% in London.

Read More: Breadmakers AB Foods, Hovis in Talks Over Merger, Sky Reports

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