The UK’s competition regulator has warned that the £3 billion (US$3.9 billion) takeover of Ei Group, the pubs company, by the owner of the Slug and Lettuce and Yates chains could push up prices for drinkers in 51 areas.
Stonegate Pub Company and Ei Group, better known as Enterprise Inns, have been given until December 13 to suggest ways to address the concerns raised by the Competition and Markets Authority so that the regulator can approve the deal.
It is expected that the pair will propose selling pubs to assuage the watchdog’s worries. The acquisition will face an in-depth investigation if their plan does not satisfy the regulator.
A tie-up between Stonegate, which is behind the Walkabout bar chain, and Ei would create Britain’s biggest pubs company.
Full Content: Reuters
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