Heineken’s bid to take over almost 2,000 Punch Tavern pubs is to be investigated by the Competition & Markets Authority.
In December the Dutch brewing giant, which already owns 1,049 leased pubs through its Star Pubs & Bars division, agreed a £403m deal with Punch to acquire 1,900 sites.
Now the CMA has opened an investigation into the proposed acquisition, which would make Heineken the UK’s third-largest pub group, after Greene King and Enterprise Inns, if it went ahead.
Phase one of the investigation was already open and would run until 24 April to assess whether the deal ‘could reduce competition and choice for customers’, the authority confirmed today in a statement published on its website.
If competition concerns were identified, the CMA would then launch an ‘in-depth merger investigation’, which could last up to 24 weeks.
Pub trade bodies including the British Pub Confederation and the SLTA have voiced concerns the deal would ‘create a monster-tie’ that would threaten consumer choice and ‘destabilise an already fragile industry’.
“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,” said Paul Waterson, chief executive of the Scottish Licensed Trade Association.
“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.”
A Heineken spokesman added: “This morning’s announcement confirms an important and fully expected stage in the process to finalise our acquisition of the Securitisation A pubs from Punch and Heineken will be fully co-operating with the CMA.”
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