UK Markets closed

Heineken's takeover of Punch Taverns gets green light from CMA

Dan Cancian
Heineken Beer Cans

Heineken's proposed takeover of part of Punch Taverns has been given the green light, after the beer giant offered to sell 33 pubs across the UK.

The Competition and Markets Authority (CMA) said it accepted the proposal and opted against launching an in-depth investigation into the deal.

Trending: BHP Billiton swings to annual profit and unveils plans to sell US shale business

Under the terms of the agreement Heineken, alongside partner investment firm Patron Capital, will take control of 1,900 pubs of the 3,350-strong Punch estate.

The Dutch brewer already owns 1,100 leased and tenanted UK pubs through its Star division.

Don't miss: 'Big Tech', not fintech, causing greatest disruption to traditional finance

However, while the deal was agreed in December last year, the competition watchdog gave the Dutch brewing giant until 20 June to address worries the deal could have a negative impact on competition in 33 locations across Britain.

Heineken has since offered to sell pubs in each of the affected areas to preserve competition and ensure customers in these locations do not lose out.

Most popular: IG Group launches trading on cryptocurrency Ethereum

"Before reaching a final decision, the CMA carefully assessed and consulted publicly on these proposed undertakings," the watchdog said in a statement on Friday (18 August).

"The CMA is satisfied that its concerns have been addressed and has therefore decided that the merger will not be referred for an in-depth phase 2 investigation."

Following completion of the deal, Heineken, which already owns the Star Pubs and Bars business, will be the third largest UK pub group after Greene King and Enterprise Inns.

You may be interested in: