Heineken gets green light for Punch Taverns pubs deal

Heineken on Friday said cheers to Britain’s competition watchdog, after the lager maker got the green light for its £403 million takeover of rival Punch Taverns.

The Competition and Markets Authority said it has accepted proposals by the brewer to resolve concerns about the purchase, which will create the third-largest pubs group in the UK.

Regulators and landlords had warned the deal could reduce competition in 33 areas, resulting in offering customers fewer drink choices and higher prices.

Heineken, which is behind the Star Pubs & Bars business, offered to sell a raft of watering holes.

The CMA said its fears have been allayed, and it will not launch further investigations.

In February Heineken, working with Patron Capital Advisers, won shareholder approval to buy Punch Taverns, which has around 3200 pubs.

Heineken will get some 1900 boozers, giving it a total of about 3000. Patron is left with 1329.

The deal is expected to complete by the end of August.