CONCERNS raised by Scottish Licensed Trade Association, among others, over Heineken’s £403 million takeover of pub chain Punch Taverns have prompted an investigation.
The industry watchdog, the Competition and Markets Authority (CMA), has responded to the Association's calls for a probe into the deal and has sent out an “invitation to comment”.
The CMA said it was looking into whether the takeover may result in a “substantial lessening of competition”.
Heineken sealed a deal in December to snap up Punch Taverns with private equity firm Patron Capital, having fought off a rival bid from the pub chain’s co-founder Alan McIntosh with a 180p-per-share offer.
The Dutch beer giant already owns 1,100 leased UK pubs and would add another 1,895 after the takeover, while Patron would acquire 1,329.
The CMA said it was “considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation” and, if so, “whether the creation of that situation may be expected to result in a substantial lessening of competition”.
It has set a deadline of March 2 for comments on the Punch takeover and is to decide whether to take further action by April 24.
Heineken toasted a 9.9 per cent rise in annual earnings, although it revealed a €1.15 billion revenue hit from the Brexit-hit pound and currency depreciation in other markets. A Heineken spokesman said: “Heineken will be fully co-operating with the CMA.”
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