Newsroom

Greene King/Laurel pub merger will not be referred if undertakings are given

123/04    9 August 2004

The OFT is not referring the completed acquisition by Greene King plc of Laurel Pub Holdings Limited to the Competition Commission on the information currently available to it because it is considering whether, instead of making a reference, to accept appropriate undertakings from Greene King plc to address the competition concerns arising from the merger.

The OFT believes that a relevant merger situation has been created, and that the creation of that situation appears to result or is expected to result in a substantial lessening of competition within the market for pubs in seven local areas.

Penny Boys, Executive Director of the OFT, said: 'The OFT is concerned that the number of pubs owned by Greene King in seven local areas as a result of this merger may reduce choice for consumers and reduce competition.  No concerns were raised by third parties.  We will negotiate undertakings with Greene King to divest a total of 13 pubs in these seven areas to address our concerns.'

NOTES

1. The Enterprise Act 2002 empowers the Office of Fair Trading to refer to the CC actual or proposed mergers for investigation and report which create or enhance a 25 per cent share of supply in the UK (or a substantial part thereof) or which involve the acquisition of turnover in the UK of over £70m.

2. Under section 73 of the Enterprise Act 2002 the OFT may, instead of making a reference, and for the purpose of remedying, mitigating or preventing the substantial lessening of competition concerned, accept appropriate undertakings from the parties. In considering appropriate undertakings the OFT will have regard to the need to achieve as comprehensive a solution as is reasonable and practicable.

3.  Before accepting any such undertakings under Schedule 10 of the Enterprise Act 2002, the OFT shall give notice of the proposed undertakings and will consider any representations made in accordance with that notice.

4.  The text of this decision will be placed on the mergers section of this website as soon as is reasonably practicable.

Back to:2004