UK: Heineken offers to sell 30 pubs as part of planned takeover of Punch Taverns
Dutch brewing giant Heineken is to serve up 30 pubs for sale as part of its planned takeover of Punch Taverns, the Telegraph reported on July 11.
The £403 mln deal is being investigated by competition authorities, which raised fears about a dampening of competition in 33 local areas if the acquisition went through unchallenged.
The Competition and Markets Authority said Heineken would need to offer a solution to prevent an in-depth phase 2 investigation which can last up to six months.
Now Heineken has identified 30 pubs which it has pledged to sell if its acquisition is given the go-ahead by the CMA.
Most of the pubs on the slate are in the north of England or Scotland with half being from Heineken’s own Star Pubs & Bars estate and the other half being from Punch’s.
The competition watchdog now has until August 22 to decide whether it is satisfied with the offer from Heineken but said it “has no material doubts” about the proposal which Heineken has put forward.
The CMA has the power to extend the deadline to October 17 though if it feels it needs time to give the offer extra scrutiny.
Heineken, whose Star Pubs business has approximately 1,100 sites is buying roughly 1,900 pubs from Punch.
The deal would make the Dutch brewer the third largest UK pub group after Greene King and Enterprise Inns.
The bid was lower than a rival one from Emerald Investment Partners, a vehicle set up by Punch’s co-founder and former finance director Alan McIntosh, but was still favored by the board.
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