S&N is happy with DTI terms

Scottish & Newcastle hopes to conclude its £1.135b acquisition of 882 Greenalls pubs and budget hotels by the end of the month, despite competition concerns from the Department of Trade and Industry.

Competition and consumer affairs minister Kim Howells has stated that he will refer the acquisition to the Competition Commission unless S&N agrees to sell or free from tie more than 660 pubs within six months of the transaction.

But a spokesman for S&N said the required undertakings posed no problems as the company would have needed to sell or free this number of pubs after the acquisition to stay within its beer order limit of 2,739 outlets.

The DTI demand would simply "refine the programme" to reduce its concentration in certain areas, the spokesman added.