£1.3bn pubco deal takes a step forward
The merger of pubcos EI Group (EIG) and Stonegate has taken a step forward after the Competition and Markets Authority (CMA) said it had received assurances that the deal would not impinge on competition concerns.
The CMA said that Stonegate came forward late last week with an amended deal that “might accept the remedies proposed by Stonegate in order to address the CMA’s competition concerns.”
EIG said: “Stonegate’s proposed remedies will be subject to a period of third party consultation. Once the consultation is complete, the CMA may then decide to accept the proposed remedies, meaning that the CMA will not refer the Acquisition for an in-depth Phase 2 investigation.
“Our expectation remains that the Acquisition will complete in the first quarter of 2020.”
Slug and Lettuce owner Stonegate Pub Company agreed to acquire Solihull-based pub operator Ei Group in a £1.3bn deal in July.
The combined business would operate nearly 5,000 pubs and the deal would make Stonegate the UK’s largest owner of pubs.
It would be a transformational deal for Stonegate which launched in 2010 with the acquisition of 333 pubs from Mitchells & Butler. Its brands also include Walkabout and Yates.
