Heineken gets the go-ahead for Punch deal

Britain's competition watchdog has accepted proposals by Heineken to offload pubs in 33 areas to satisfy antitrust concerns over its £403'‹m takeover of Punch Taverns.
Heineken is offloading 30 pubs to satisfy competition concerns. Photo: Heineken/PA Wire .Heineken is offloading 30 pubs to satisfy competition concerns. Photo: Heineken/PA Wire .
Heineken is offloading 30 pubs to satisfy competition concerns. Photo: Heineken/PA Wire .

​Heineken said that 30 pubs will need to be offloaded. This includes one pub in West Yorkshire, the Fleece Inn at Addingham.​

The Competition and Markets Authority (CMA) said in June that the deal could impact competition and see drinkers face higher prices in 33 locations.

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Before the merger was referred for a further in-depth investigation, the companies were given the opportunity to offer proposals to address concerns.

​The CMA said: "Heineken has offered to sell pubs in each of the affected areas to preserve competition and ensure customers in these locations do not lose out.

"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 two investigation."

The CMA has previously said the 1,895 Punch pubs being snapped up by Heineken, which it will add to 1,100 leased pubs it already owns across the UK, only account for 4​ per cent​ of the market and are therefore "not a major route to market for brewers".

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Heineken sealed its deal last 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.

Under the deal, Heineken will buy 1,895 pubs, while Patron will acquire 1,329.

Heineken has vowed to continue to promote Yorkshire ales once the deal goes through following concerns that its takeover could limit the number of Yorkshire beers on sale in its pubs.

The firm said that around 15​ per cent​ of the brands ​it​ sell​s​ in each of ​its​ existing pubs are not owned by ​Heineken.

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A Heineken spokesman ​said​: ​"​We have a great track record of investing in pubs, and we would continue this strategy - working closely with great operators to create even better venues. We also recognise that offering a range of traditional cask or craft ales is important to any pub - and even for tied pubs there is scope to do this.

​"​​We already have great Yorkshire ales in our portfolio, including John Smith’s and Theakstons.”

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