Associated British Foods (ABF), the owner of Kingsmill bread, is engaged in merger talks with Hovis, a rival bread maker. The discussions involve Endless, a private equity firm, which is reportedly in talks with ABF regarding a possible deal for Allied Bakeries, the company behind Hovis. This potential merger could reshape the UK bread market, affecting millions of households that purchase Hovis and Kingsmill products. The talks have garnered attention from city brokers who appear to support the proposed merger, highlighting its potential impact on the baking industry.