The Courier & Advertiser (Perth and Perthshire Edition)
Pub group takeover probe welcomed
The Scottish Licensed Trade Association has welcomed the Competition and Markets Authority’s decision to investigate Heineken’s bid to acquire pub operator Punch Taverns.
SLTA CEO Paul Waterson said the proposed £403 million takeover of the chain had the potential to be unfair to brewers, publicans and consumers.
The CMA has sent out an “invitation to comment” as it looks 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 pubs across the UK and would add another 1,895 after the takeover, while Patron would acquire 1,329.
The SLTA was among those that called for a CMA probe into the deal.
“We are delighted that the CMA has chosen to listen to the concerns voiced by so many businesses, organisations and individuals within the pub and brewing industry and open an investigation into Heineken’s takeover bid for Punch Taverns,” Mr Waterson said.
“Heineken is a global brewer, with very different priorities to their customers who often rely on hard earned local relationships to make their businesses work.
“We know from both Heineken’s words and actions 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.”
The CMA move comes a day after Heineken chief executive Jean-Francois Van Boxmeer praised the “institution” of British pubs as he unveiled a 9.9% rise in annual earnings and full-year underlying operating profits of £3 billion.
A Heineken spokesman said the CMA move was an “expected stage in the process to finalise our acquisition” and said the group would co-operate fully.