The Competition and Markets Authority’s initial investigation into the merger found that around 1,000 Spirit pubs overlap with a Greene King pub.
In the vast majority of cases, there are alternative pubs offering similar eating and drinking options but in about 16 areas the CMA found that pubs were each other’s key rivals and did not face sufficient competition.
It is worried that the loss of competition may lead to an increase in prices or a deterioration in the quality of the offering.
The CMA has warned the deal will be referred for an in-depth investigation unless Greene King and Spirit offer acceptable undertakings to address the CMA’s competition concerns “in a clear-cut manner”.
CMA senior director Sheldon Mills said: “Overall, we did not find major concerns with this transaction, given that most of the parties’ pubs face local competition from national pub chains or independent rivals. “In a small number of areas, we found that after the merger the parties would operate pubs in close proximity without facing sufficient competition.” he added.
“Greene King and Spirit now have the opportunity to resolve these concerns by offering appropriate undertakings.”
Full content: The Guardian
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