Punch Taverns at centre of takeover tussle

Dutch brewing giant Heineken has launched a takeover bid for one of Britain’s largest pub owners.

A rival bid has been tabled by Alan McIntosh, one of Punch’s founders, as reported in City AM.

Punch Taverns’ share price leapt by 38% to 178p following the announcements.

Heineken has bid 174p per share of Punch, which owns 3,300 pubs across the UK. McIntosh has bid 185p per share.

The bids value the company between £385 million and £410 million.

In November, Punch posted an annual profit of £60 million, compared with a £105 million loss the year before. It was the first time it has been in the black since 2013.

Punch said in a statement that it was in “advanced discussions” with Heineken over a deal and acknowledged McIntosh’s bid, adding the caveat that a deal with the latter would require McIntosh “arranging committed financing”.

It went on to say that further announcements would be made in due course.

Heineken already owns 1,100 leased pubs in Britain, and any deal with the Dutch company would likely be subject to scrutiny from competition authorities.

The Scottish Licensed Trade Association (SLTA) called on the Competition and Markets Authority to look into the potential Heineken deal, citing “grave concerns” about possible consequences for the pub trade.

“It would create a ‘monster-tie’; a chain of over 4,400 pubs that would destabilise an already fragile industry,” said Paul Waterson, CEO of the SLTA.

“[It is] a backwards move [and] it represents bad news for brewers, whose route to market will almost certainly be controlled by Heineken. It also signals bad news for drinkers who will be offered far less choice at the bar,” he added.

Potential bidders for Punch Taverns have until 11 January to make a firm offer for the company.