CMA raises pub price rise concerns

THE COMPETITION and Markets Authority (CMA) has flagged concerns about potential price rises at some pubs following a £3bn merger of Slug and Lettuce pub owner Stonegate and Ei Group.

The CMA said that Stonegate Pub Company’s proposed purchase of Ei Group did not raise UK-wide concerns, but could damage competition in 51 local areas.

It said the merger, which would create the UK’s biggest pub operator, with around 5,000 pubs, would be cleared if the companies could overcome those local concerns. Ei said that it was confident it could address the CMA’s worries to the watchdog’s satisfaction and help to avoid an in-depth investigation.

Ei expects the merger to complete in the first quarter of the New Year.