EI Group Share News (EIG)

(Alliance News) - The UK Competition & Markets Authority on Friday said it may accept Stonegate Pub Company Bidco Ltd's remedies to address competition concerns over its Ei Group PLC acquisition.

Earlier in December, the regulator said the pub group merger worth GBP3 billion did not raise UK-wide competition concerns. However, the CMA said there was a possibility that competition may be lessened in 51 local areas and this could result in price increases or lower quality products and services.

Following this announcement, Stonegate submitted proposed remedies to the concerns raised.

Upon consideration of the remedies, the CMA on Friday said "there are reasonable grounds for believing that the undertaking offered, or a modified version of it, might be accepted". The regulator will decide by February 19 whether to accept the undertaking but may extend this date until April 17.

Ei said Friday it expects that the CMA will not refer the acquisition for an in-depth Phase 2 assessment, and that the merger will complete in the first quarter of 2020.

Shares in Ei were up 0.1% at 283.60 pence per share on Friday morning in London.

By Ife Taiwo; ifetaiwo@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.