Is Hovis on the brink of a takeover deal?

Sky News has learned that following a bidding war, Endless is in advanced talks to buy the bread-maker Hovis.

Wednesday morning saw the other bidder, Newlat Food, issue a statement saying they had pulled out from talks and would only continue if they were the only interested party.

A deal could be confirmed as early as this week.

Owned by Premier Foods (LON: PFD) and US investment firm, Gores Group, Hovis is a 134-year old firm that employs 2,800 people across the UK. Sales at the brand surged over lockdown as consumers stockpiled.

Although not confirmed, it is estimated that shareholders are expecting a £100m deal for the brand.

Newlat joined the bidding process for Hovis a month ago and said on their website: “Newlat Food is awaiting feedback from Hovis shareholders and, therefore, any other details regarding the transaction will be communicated with the evolution of the negotiations.”

In a statement released on Wednesday afternoon Hovis owner, Premier Foods, said that they can “confirm that a sale process for a potential transaction in respect of Hovis is ongoing. However there can be no certainty that any transaction will conclude. The Group will provide an update in due course as appropriate.”