DTI approves Courage takeover
Tuesday 15 August 1995
The Department of Trade and Industry said that Jonathan Evans, Competition and Consumer Affairs Minister, had accepted undertakings from Scottish & Newcastle and Courage and decided not to refer the acquisition to the Monopolies and Mergers Commission. This was in line with advice from the Director General of Fair Trading.
The DTI said Scottish & Newcastle has agreed to reduce the number of tied pubs in its estate by 115 to 2,624 within a year of completing the merger. The new total will become a ceiling for the size of the brewer's estate for three years, after which it will be reviewed.
Scottish & Newcastle will be able to seek an earlier review if there is a material change in circumstances, according to the DTI statement. Scottish & Newcastle has also undertaken to release 1,000 Inntrepreneur Estates tied pubs from its agreement to receive supplies of beer from S&N. Some 500 must be released by January 1996, and another 500 by January 1997. These 1,000 pubs will remain tied to IEL, a joint venture of Courage and Grand Metropolitan, but will in future be supplied by a competitive tendering process from which Scottish & Newcastle and Courage will not be excluded.
The news was yesterday welcomed by Foster's Brewing Group, owner of the Courage brewing assets in the UK and Ireland. FBG president and chief executive, Ted Kunkel, said: "With the sale of Courage, we have achieved a very significant development for FBG's future. It is also, I believe, the most significant development in the UK and European brewing industry in the past decade or more."
He said the partnership created to manage the Foster's brand in the UK and Europe would propel its future growth and the Courage business and brands should prosper under S&N's stewardship.
"FBG can now pursue growth opportunities from the exceptionally solid base of a balance sheet gearing of about 23 per cent and strong sustainable cash flows from its operating businesses," Mr Kunkel said.
- 1 Bill Clinton portrait features Monica Lewinsky reference, artist admits
- 2 Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
- 3 PornHub turns masturbation into energy in bid to save the planet
- 4 Have sex with your iPad thanks to the new sex toy no-one asked for
- 5 Average penis size revealed: Scientists attempt to find what is 'normal' to reassure concerned men
Bill Clinton portrait features Monica Lewinsky reference, artist admits
Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
The 'sex selfie stick' lets you FaceTime the inside of a vagina
Kanye West gives guest lecture at Oxford University: 'If I, Kanye West, can remove my ego, I think there's hope for everyone'
'This is what Islam tells us to do': A rare glimpse inside a Saudi Arabian prison – where Isis terrorists are showered with perks and privileges
New theory could prove how life began and disprove God
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
This is what it's like to be dead, according to a guy who died for a bit
Ukip would cut billions from Scottish budget to fund English tax cuts
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
End of the licence fee: BBC to back radical overhaul of how it is funded
iJobs Money & Business
£20000 - £21000 per annum + uncapped commission: SThree: As a graduate you are...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£15000 - £16000 per annum: Recruitment Genius: A Customer Service Advisor is r...
£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...