Green Light For CKA’s Acquisition of Greene King
The European Commission has approved, under the EU Merger Regulation, the acquisition of Greene King, the UK’s leading integrated brewer and pub retailer operating over 2,700 pubs, restaurants and hotels across England, Wales and Scotland, by CK Asset Holdings of the Cayman Islands. CK Asset Holdings, which is active in property development and investment, hotel and serviced suite operation, property and project management, investment in infrastructure and utility asset operation, had made a recommended £2.7 billion cash offer for Greene King. Including debt, the enterprise value of the proposed transaction is approximately £4.6 billion.
The Commission concluded that the proposed acquisition would raise no competition concerns, because there is no horizontal overlap or vertical link between the activities of the companies. The transaction was examined under the simplified merger review procedure.
For the year ended 28 April 2019, Greene King reported revenue of £2.217 billion and its operating profit before exceptional and non-underlying items was £368 million. Profit before tax and exceptional and non-underlying items was £247 million and net profit before tax was £173 million.
