Investing.com -- Associated British Foods PLC (LON: ABF ) confirmed on Tuesday that it is discussing a potential transaction involving its Allied Bakeries business with Endless LLP, the private equity firm that owns the British bakery Hovis.

The news of these negotiations follows a report from Sky News over the weekend, which suggested that ABF and Hovis were in the midst of negotiating a significant industry deal.

In a statement on Tuesday, ABF said there is no certainty that a transaction will be completed or what the terms might be.

Sky News report said that bankers are cooperating with both parties in the discussions about the potential transaction.

In addition to the talks with Hovis, ABF is said to be considering other alternatives for the future of Allied Bakeries that do not involve a deal with Hovis, the report added.