14th Feb 2020 09:03
(Alliance News) - The UK Competition & Markets Authority said Friday it has accepted undertakings from Stonegate Pub Co addressing competition concerns over its acquisition of Ei Group PLC.
The regulatory body said it therefore will not refer the merger to a Phase 2 investigation.
In July 2019, Ei - formerly know as Enterprise Inns - agreed to a GBP1.3 billion takeover offer from Slug & Lettuce-chain owner Stonegate.
In December, the CMA said the acquisition did not raise UK-wide competition concerns but noted that there was a possibility that competition may be lessened in 51 local areas and could result in price increases, or lower-quality products and services.
In January, Stonegate submitted undertakings offering to divest 42 pub sites in order to address the concerns raised by the competition regulator regarding the 51 local areas.
The undertakings were accepted by the CMA and will come into effect Friday, the regulator said.
Shares in Ei were up 0.1% at 284.60 pence each on Friday morning in London.
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.