The Competition and Markets Authority's unconditional clearance of Associated British Foods' (LSE:ABF) proposed acquisition of Hovis is a meaningful positive for the diversified food and retail group's grocery division, stockbroker Shore Capital highlighted in a note.
Shore Cap reckons the Hovis acquisition has the basis to make "a very positive contribution" to ABF's grocery earnings over time, framing the clearance as unambiguously good news for ABF's food operations.
The analyst note, meanwhile, also highlighted the appointment of Lucy Slinger as chief financial officer of Primark as a welcome development, given the direct relevance to the ongoing process of separating Primark from the wider food group, with the demerger targeted for completion by mid-2027.
