Punch Taverns quashes merger rumours

PUNCH Taverns has firmly denied that it is in merger discussions with rival Mitchells & Butlers.

Speculation of merger talks started last week, but the company released a statement today saying it was not in talking to the O'Neills pub chain owner or any Mitchells & Butlers shareholder regarding any offer.

A merger of the two companies would create the UK's largest pub company with 11,000 outlets and a market value of £4.9bn.

Earlier this year the two companies were alleged to have discussed a possible asset swap.