The UK’s competition watchdog on Friday warned it has concerns that Stonegate’s £3 billion takeover of pubs giant Ei could result in potential price rises for customers in certain areas.
The Competition and Markets Authority said the proposed deal “does not raise UK-wide competition concerns”, and its initial investigation findings show the merged business would continue to face competition at a national level from rivals.
However, it thinks the swoop could damage competition in 51 local areas. It is concerned “pub goers in those areas could be faced with price increases or lower quality products”.
It has asked Slug & Lettuce owner Stonegate and Ei, formerly known as Enterprise Inns, to suggest ways of overcoming the concerns. The firms said they are confident that their proposals will enable the sale to be approved without the need for a deeper, second-phase investigation.
Stonegate agreed the deal for Ei, the 4000-strong pub group, in July.
