The Press and Journal (Aberdeen and Aberdeenshire)
Trade sceptical of Heineken
Takeover: Offer to sell some pubs doesn’t address list of issues says SLTA
The Scottish Licensed Trade Association (SLTA) said yesterday an offer by beer giant Heineken to offload pubs in order to satisfy competition fears over its proposed £403million takeover of Punch Taverns did nothing to address a “significant list of issues”.
A partnership of Heineken and private-equity firm Patron Capital sealed a deal in December to snap up Punch for £1.80 per share. The companies will split the pubs between them.
But the Competition and Markets Authority (CMA) identified 33 areas in the UK where it believed the deal could reduce the choice for punters.
Yesterday, the CMA revealed Heineken had offered to sell pubs in each location that could see an impact on competition and could lead to drinkers paying more.
Heineken’s proposals or a modified version of them “might be acceptable to remedy the competition concerns,” it said.
The CMA will now undertake a public consultation and decide by August 22 whether or not to refer the merger for an in-depth investigation.
It has previously said the 1,895 Punch pubs being snapped up by Heineken, adding to the 1,100 leased pubs already owned by the Dutch brewer across the UK, account for only 4% of the market.
A spokeswoman for Heineken said: “We welcome confirmation from the CMA that only a small number of pubs are required to be sold.
“It’s a sensible outcome and good news for pub-goers across the UK who will see the benefit of well-invested pubs in their communities.”
But SLTA chief executive Paul Waterson said: “Heineken’s offer to sell off outlets to appease the CMA may well tick a box where competition is concerned, but it does nothing to address the significant list of issues voiced by the industry when this merger was announced. Prices for consumers will still rise. Local brewers’ access to market will still be restricted due to stocking requirements, and tenants will suffer through rent, stock and service price increases with job losses and pub closures sure to follow.
“We would urge the CMA to look deeper into the matter and launch an in-depth investigation.
“Only recently, Heineken were celebrating investment in their tied estate. Now, they are more than happy to sell off pubs – some of which may also be family homes – simply to satisfy the CMA.
“Offering to sell these premises is further proof of Heineken’s disregard for tied tenants as the company looks to deliver value for only people it cares about – shareholders.
“The SLTA has spent many years campaigning to get a fairer deal for tied tenants in Scotland – and allowing this deal to go through would be a step back for the industry.”