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Why is a watchdog worried about the price of an Ulster Fry?

John CampbellEconomics and business editor, BBC News NI
News imageGetty Images A picture of an Ulster Fry - including beans, sausages, two fried eggs, mushrooms, potato bread, soda farls and a small bowl of baked beans on a grey stone plate.Getty Images
While the components may change from person to person, an Ulster Fry usually includes soda farls and fried potato bread

The supply of key parts of an Ulster Fry would become uncompetitive if two major bakery businesses merged in Northern Ireland, a watchdog has found.

Similar to a full English breakfast or an Irish fry, the Ulster Fry will usually have one key difference - the inclusion of fried potato bread, pancakes and soda farls.

The Competition and Markets Authority (CMA) examined a planned deal between ABF bakeries, the owner of Sunblest, and Hovis, whose brands include Ormo.

It said the merged business would control 80% of the NI market in pancakes, 60% of soda farl sales and nearly 50% of potato bread.

Its provisional findings said this would be expected to result in "a substantial lessening of competition".

The merger plan in Northern Ireland is part of a wider proposed deal between ABF and Hovis across their UK businesses.

The CMA said the deal did not raise competition concerns for the bread market in Great Britain.

ABF and Hovis now have until 9 April to tell the CMA how they will address its concerns about the NI market.

One potential remedy is for ABF to sell its Northern Ireland business to a third party.

The CMA report said ABF is currently running a sales process for the Northern Ireland business, and a number of interested parties have submitted non-binding offers.

It added that the business "represents an opportunity for other suppliers, such as those based in the Republic of Ireland to enter or expand in NI".

"We will continue to engage constructively with the CMA, including with regard to our Northern Ireland business, so that we can achieve regulatory clearance as efficiently as possible," ABF said in a statement.