Watchdog probes takeover

Pubs: Competition body examines Heineken’s bid for Punch Taverns

Heineken’s planned £403million swoop on pubs and hotels including the Gunsmiths in Inverness, the Blacksmiths in Culloden and the Caledonian in Stornoway is being probed by a watchdog.

The Competition and Markets Authority (CMA) said yesterday it was looking into whether the proposed takeover of Punch Taverns may result in a “substantial lessening of competition”.

A partnership of Dutch brewing giant Heineken and private-equity firm Patron Capital sealed adeal in December to snap up Punch for £1.80 per share. The companies will split the pubs between them.

Heineken already owns 1,100 leased sites across the UK in its Star Bars and Pubs estate, including both the Malt Mill and Noose & Monkey in Aberdeen and the Waterfront and Blackfriars in Inverness.

It would add another 1,895 after the takeover, whilePatronwouldacquire 1,329.

Concerns have already been raised over the deal within the industry, with the Scottish Licensed Trade Association (SLTA) having called for the CMA to launch a probe.

The CMA’s initial investigation into whether the deal could reduce competition and choice for customers is currently scheduled to last until April 24.

It could lead to amoreindepth probe – lasting up to 24 weeks – unless the merging parties offer undertakings which address any competition concerns.

A Heineken spokesman said theCMA's call forcomments on the planned takeover was an “important and fully expected stage in the process to finalise our acquisition”.

He added: “Heineken will be fully co-operating with the CMA.”

SLTA chief executive Paul Waterson said the trade body was “delighted that theCMAhas chosen to listen to the concerns voiced by so many businesses, organisations and individuals within the pub and brewing industry”.

He added: “We know from both Heineken’s wordsandactions that they will give preference to their own products across their estate, and this is simply not fair for brewers, publicans or consumers.

“We look forward to receiving the findings of the investigation.”

Heineken’s approach for Punch, alongside Patron, sawoff a rival bid by Emerald Investment Partners – led by Punch co-founder Alan McIntosh.

“We know Heineken will give preference to their own products”

TARGET: The Blacksmiths at Culloden is one of Punch Taverns’ large portfolio of pubs which could be taken over by brewing giant Heineken and Patron Capital