UK: Competition regulator gives Heineken green light in Punch Taverns takeover

d6bffd38-9af3-42e9-b360-c8ab5dd4518darticleimage.jpg

21 Aug 2017 --- Britain’s competition watchdog says Heineken’s proposal to sell off pubs in 33 areas does satisfy previous antitrust concerns about the US$519 million takeover of Punch Taverns. The Competition and Markets Authority (CMA) in the UK says the Dutch beer giant has cleared all hurdles in relation to the takeover and has avoided further investigation.

In June 2017, the CMA said that Heineken’s proposed purchase of part of the Punch Taverns estate could reduce competition in 33 local areas across the UK. It was also concerned that the merger would close off an important route to market for brewers that compete with Heineken.

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

At the time, Heineken said it intended to offer “acceptable undertakings” and was confident that these would enable the transaction to be approved by the CMA without a phase two referral.

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, as reported in FoodIngredientsFirst at the time

The majority of the pubs are in the north of England or Scotland and the sales are expected to be completed soon. Punch originally agreed to the takeover in December last year.

Under the new deal, Heineken will become the third largest pub company in Britain after Greene King and Enterprise Inna. 

A statement from the CMA confirms the clearance.

“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,” it says. 

“Before reaching a final decision, the CMA carefully assessed and consulted publicly on these proposed undertakings. The CMA is satisfied that its concerns have been addressed.” 

Heineken has made several acquisitions this year. In June, the brewer completed the transaction to acquire Brasil Kirin Holding S.A. (Brasil Kirin) from Kirin Holdings Company, Limited. 

In addition, it also agreed to buy the remaining stake in the California-based craft brewer Lagunitas. 

Related Articles

Business News

Firmenich expands presence in Africa by acquiring Flavourome

14 Dec 2017 --- Firmenich has announced that it is acquiring Flavourome, an established privately-held flavors company in South Africa that has been successfully serving the local market since 1998. With this acquisition, Firmenich will accelerate business growth in this strategic region by gaining direct access to new customers, while operating its own high performing manufacturing facility in South Africa. 

Food Ingredients News

Diana Food launches solutions that deliver new vegetable eating experiences

14 Dec 2017 --- Consumers strive for a healthy lifestyle and eating habits but they are not ready to make any compromise on taste. Today, there is a major shift in eating experience towards authenticity, freshness from “real food,” which also applies to consumers’ packaged goods. Attentive to those needs, Diana Foods has leveraged their historical knowledge and experience and pushed the boundaries of innovation to offer the market a groundbreaking taste solution.

Regulatory News

US: New study puts forward case for hiking up alcohol taxes

13 Dec 2017 --- US state alcohol excise taxes are typically only a few cents per drink and have not kept pace with inflation, according to a new study. Soon to be published in the January issue of the Journal of Studies on Alcohol and Drugs, authors claim that hiking up taxes would be a chance for US states to increase revenues while simultaneously improving public health costs related to excessive alcohol consumption.

Regulatory News

Plain packaging could lead to billions in food industry losses, says new study

12 Dec 2017 --- Following the introduction of plain packaging for tobacco products in some countries and calls to extend the legislation to other sectors, marketing consultancy Brand Finance has analyzed the potential financial impact of such a policy on food and beverage brands.

Food Ingredients News

Sensient launches new flavors collection including floral and herbal extracts

08 Dec 2017 --- Sensient Flavors has launched it's All Natural Flavor Collections. The new flavors help food and beverage manufacturers to respond successfully to upcoming market trends and reflect current consumer preferences of botanical extracts. 

More Articles