Greene King gets backing for £70m deal

Bid target Capital Pubs rejected two approaches from London-based Fuller, Smith & Turner last month, but as Greene King’s proposal is worth nearly 18 per cent more its management has swung behind the offer.

The interest from Suffolk-based Greene King values the company at £70m and marks its third hefty pub group acquisition this year following the takeovers of RealPubs and Cloverleaf for a combined £108m.

Capital’s pub portfolio consists of 34 outlets in and around the London area, which Greene King says it intends to combine with the RealPubs estate of 14 premium London pubs.

Chief executive Rooney Anand said the deal represented another step in its strategy of building its presence in the capital and takes its total estate in the Greater London area to 250 pubs.

He expects the sites to do especially well as the 2012 Olympics approaches, but added that longer term its expects London to outperform the national market.