OFT to hold inquiry into Allied Domecq takeover
THE Office of Fair Trading (OFT) has launched an inquiry into Whitbread's proposed takeover of Allied Domecq.
Last week Allied's board accepted the £2.4b bid from Whitbread. The OFT has now issued an invitation for comment from third parties, as widely expected.
One of the most vocal objectors is the Campaign for Real Ale, which says the deal could result in just two national brewers supplying more than 80% of the market. "This will create the biggest pub chain in the UK with some 7,000 pubs and will undoubtedly lead to less choice for consumers," said head of campaigns Mike Benner.
Allied shareholders have a month to consider the offer tabled by Whitbread.
Meanwhile, Allied and Whitbread have extended their exclusivity agreement, which has delayed a rival bid from Punch Taverns. Bass is also expected to launch a counter bid.