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. 

To contact our editorial team please email us at editorial@cnsmedia.com

Related Articles

Packaging & Technology News

Ball partners with Brouwerij Homeland for ultra-minimalist craft beer can design

18 Jul 2018 --- Dutch craft beer brand Brouwerij Homeland Amsterdam has collaborated with Ball to create a unique, blank can design for its popular spelt beer. The cans utilize Ball’s 33-centiliter standard format, which is a popular choice amongst many craft brewers. Unlike other brands, Brouwerij Homeland Amsterdam has chosen to leave the 360-degree can canvas blank, creating a strong, stand-out design. The minimalist cans feature no printing or messaging, other than the name, date and alcohol percentage on the bottom of the can.

Food Ingredients News

Kaslink & Tetra Pak partnership: Transforming Nordic oats into plant-based dairy alternatives

16 Jul 2018 --- With plant-based dairy drinks trending strongly in Europe, Kaslink and its partner, Tetra Pak are “willing to take risks to stay ahead of the competition.” In the Nordic countries, oat is a common food ingredient. Oat-based drinks and fermented oat-based products are cereal-based products which are common in Asia where many products are based on soy, almond or rice. The global market for alternative dairy drinks is expected to reach US$16.3 billion this year alone, according to Innova Market Insights data, a dramatic increase from US$7.4 billion in 2010.

Food Ingredients News

Brexit report: Turbocharge exports, invest in innovation & restore productivity, urges FDF

13 Jul 2018 --- The UK food and drink industry needs help to “turbocharge” the sector’s exports and restore productivity levels to avoid falling behind other European countries once Britain has left the EU, that is according to the Food and Drink Federation (FDF). An industry-wide report highlights the key growth opportunities for the food and drink industry, the UK's largest manufacturing sector which contributes £28.2bn (US$37bn) to the economy annually, employs 400,000 people and is a key part of the nation's £110 billion (US$144bn) farm-to-fork food chain.

Food Ingredients News

Weekly Digest: Tetra Pak notes sustainability milestone, Arla Foods & Yeo Valley transaction unconditional

13 Jul 2018 --- This week in business, Tetra Pak has achieved 50 percent renewable electricity consumption in just two years since its RE100 commitment. ADM announced that Kristy Folkwein, Senior Vice President and Chief Information Officer, was recognized by Constellation Research on its 2019 Business Transformation 150 and Campbell Soup appointed Diego Palmieri as Vice President and Chief Marketing Officer, US Meals & Beverages, effective July 18, 2018.

Food Ingredients News

Bunge Loders Croklaan to debut Non-GMO Project Verified sunflower lecithin

12 Jul 2018 --- Customers seeking growth opportunities in the non-GMO food and beverage space now have a versatile new lecithin solution, according to Bunge Loders Croklaan. At IFT18 (July 16-18), Bunge Loders Croklaan will showcase BungeMaxx sunflower lecithin, a Non-GMO Project Verified ingredient with a range of benefits for food and beverages, including emulsification and crystallization control.

More Articles