21st Jan 2020 08:40
(Alliance News) - The UK's Competition & Markets Authority on Tuesday said it will consult on undertakings provided by Stonegate Pub Co to address competition concerns over its acquisition of Ei Group PLC
Earlier in December, the monopoly regulator referred the GBP3 billion pub group merger for an in-depth probe and said that merger did not raise UK-wide competition concerns but 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.
Following the December CMA announcement, Stonegate submitted proposed remedies to the concerns raised.
Ei agreed to a GBP1.3 billion merger offer from Slug & Lettuce owner Stonegate in July 2019. Including debt, the deal values Ei at GBP2.97 billion.
CMA on Tuesday said Stonegate has offered to divest 42 pub sites to address competition concerns raise by the regulator for 51 local areas.
The regulator now has until February 19 to consider accepting Stonegate undertakings, or a modified version of the undertaking.
Ei Group shares in London were up 0.1% at 284.20 pence each on Tuesday morning.
By Tapan Panchal; [email protected]
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