Heineken’s takeover of pubs faces regulator’s scrutiny

Heineken’s acquisition of almost 2,000 pubs from British chain Punch Taverns is to be investigated by the UK’s competition watchdog, it was reported on 16 February 2017.

Late last year, Heineken agreed a deal alongside investment firm Patron Capital that would see them buy Punch for GBP 403 million (USD 502 million). Heineken is contributing GBP 305 million for 1,900 pubs out of the 3,350-strong Punch Taverns estate. Heineken already owns about 1,000 leased and tenanted pubs throughout Britain.

The deal, which has received approval from Punch’s shareholders, would make the brewer the UK’s third-largest pub group, after Enterprise Inns (5,000) and Greene King (3,000).

But the move will now be scrutinised by the Competition and Markets Authority (CMA), which will “assess whether the deal could reduce competition and choice for customers”.

The first phase of the investigation is scheduled to last until 24 April 2017.

Heineken’s takeover had raised fears among publicans that it will fill the new pubs with its own beer and cider brands. The company typically aims to stock its existing pub estate to ensure Heineken-owned brands make up 85 percent of what is on offer.