Proposed acquisitions by Punch Group of the UK retail business of Allied Domecq and by Bass of Allied Domecq Pubs from Punch

Stephen Byers, the Secretary of State for Trade and Industry, announced on 26th November 1999 that he intended to refer to the Competition Commission the proposed acquisitions by Punch Group Limited (“Punch”) of the UK Retail Business of Allied Domecq Plc, and by Bass Plc of certain Allied Domecq Pubs from Punch, unless suitable undertakings are obtained from Punch and Bass. This decision is in accordance with the advice of the Director General of Fair Trading. Mr Byers agreed with the DGFT that the acquisitions gave rise to competition concerns in respect of the market for pub retailing. He said at the local level, the acquisitions would increase or create a concentration of 25% or more of pubs owned by Punch in 13 petty sessional divisions (PSDs) and owned by Bass in 4 PSDs. Mr Byers has asked the DGFT to seek suitable undertakings from Punch and Bass. The breweries should undertake to dispose of or free from tie within six months such number of pubs in those PSDs as will reduce their shares of pubs to 25% or less. (DTI Press Release P/99/972)