© Jasper Juinen/Heineken
The UK’s competition watchdog has given the green light to Heineken’s purchase of Punch Taverns after it offered to sell pubs in 33 areas.
In June, the Competition and Markets Authority (CMA) said that Heineken’s proposed purchase of part of the Punch Taverns estate could reduce competition in 33 areas across Great Britain.
It identified locations where its pubs would not face sufficient competition after the merger, with worries that it could lead to a deterioration in the quality of the service on offer.
Before the merger was referred for a further in-depth investigation, the companies were given the opportunity to offer proposals to address these concerns. Heineken offered to sell pubs in each of the affected areas to preserve competition and ensure customers in these locations would not lose out.
After the initial investigation was announced, Heineken said it was ‘confident’ that, after making changes to the deal, the transaction would be approved by the CMA.
The CMA today said it is ‘satisfied that its concerns have been addressed’ and that the investigation will not continue.
Last December, Heineken agreed a deal worth £305 million to acquire more than half of Punch Taverns’ UK estate, making it the third largest pub operator in the country, behind Greene King and Enterprise Inns.
The Punch Taverns pubs which form the deal recorded a turnover of £242 million last year.
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