CMA investigating Stonegate’s anticipated Ei Group acquisition

The Competition and Markets Authority (CMA) has launched an investigation into Stonegate Pub Company’s anticipated acquisition of Ei Group.

The CMA is considering whether the acquisition would result in a substantial lessening of competition within the UK and is inviting comments from interested parties before 25 October, with a 16 December deadline for a phase one decision.

It was announced in July that Stonegate was set to acquire its fellow pub company for approximately £1.27b (not including net debt). The acquisition is expected to complete in the first quarter of 2020.

Ei Group is the largest owner of pubs in the UK with over 4,000 properties across England and Wales, while managed pub company Stonegate, which is owned by private equity company TDR Capital, has more than 765 operating outlets.