Call for full competition probe into Heineken’s bid for Punch

Brewer will have to offer concessions to avoid an in-depth probe

The Scottish Licensed Trade Association has called for a full competition investigation into Heineken’s proposed £403 million takeover of pub chain Punch.

The group has been a long-term critic of the tie-up, saying it could hurt choice for consumers and lead to price rises.

Chief executive Paul Waterson yesterday welcomed interim findings from the Competition and Markets Authority (CMA) that the takeover could impact on the trade in 33 areas across Britain.

“It comes as no surprise to us that the preliminary investigation of the Heineken Punch takeover bid has raised questions over competition,” he said.

“We have consistently voiced our concerns over the negative impact of the deal since it was announced, believing it will create a monster pub co which will adversely affect operators, consumers and brewers.

“We would urge the CMA to dig deeper and launch a full investigation into the merger.

“This takeover will inevitably lead to decreased choice for consumers, price rises, pub closures and job losses UK wide. The priority is delivering value for shareholders – tenant and consumer interests will always be secondary.”

While the CMA highlighted potential competition issues, it said it believed the tie-up would significantly cut the choice of tipples available.

The CMA said the 1,895 Punch pubs being snapped up by Heineken, which it will add to 1,100 leased pubs it already owns across the UK, only account for 4% of the market, therefore “not a major route to market for brewers”.

Heineken now has to address the CMA’s concerns over the 33 areas where competition could be reduced by June 20, or face an in-depth probe.

Paul Waterson, chief executive of the Scottish Licensed Trade Association, has condemned the proposed deal.