Greene King has exchanged contracts on the sale of the 16 pubs required for disposal by the Competition and Markets Authority (CMA), and expects completion to take place by early October 2015. It is understood that 13 of the pubs have been acquired by Heineken’s Star Pubs.
Rooney Anand, Greene King chief executive officer said: “We have exchanged contracts with buyers for the 16 pubs we were required to sell by the CMA. We are therefore close to completing the remedial actions required of us to receive unconditional CMA approval for the acquisition of Spirit Pub Company. Once the transactions complete, there will be no further obligations on Greene King.
“Although the CMA process was intensive, we reached a sensible conclusion. The fact that we only had to dispose of 16 pubs, out of a combined total of 3,100, highlights the compelling strategic rationale for the deal, thus avoiding unwanted business distraction and minimising the lost profit from any disposals.
“We are moving ahead with the integration of our two businesses and will update on progress in December at our interim results.”
Development potential within Star Pubs
David Forde, UK Managing Director for Heineken, commented on the purchase:
“We recently announced an investment of £30 million in our Star Pubs & Bars leased & tenanted estate by the end of 2015, and now I’m pleased that we can add to our 1,050 pub estate with these 13 new pubs. This acquisition, and our record investment, is a demonstration of our long term commitment to the great British pub, and to growing successful businesses for our lessees. These pubs are all in excellent locations and have significant development potential within the existing Star Pubs & Bars business.”
