In the latest deal struck between two enormous organisations, the Hong Kong-based operator CKA is reportedly going to be acquiring pub giant and brewer, Greene King. It appears like this deal is a product of the on-going consolidation that is taking place in the sector.
At the moment, Greene King has ownership of nearly 2,700 pubs as well as restaurants and hotels. The ownership sprawls across the whole of United Kingdom. Their head operations take place through Suffolk, as they are essentially based there. After the deal finalises and all the paper work is done for the same, the total value of Greene King is expected to reach a whooping £2.7bn. This doesn’t come across as a surprise especially because merely months ago, the Fuller-led brewer, London Pride had sold off its entire drinks business to Asahi, which happens to Japan’s biggest brewer. It appears like a chain of brewers are getting re-acquired over the past couple of months. To recall, just earlier in July this year, another one of the pub groups, Stonegate Pub had announced to the public that they will be buying off Ei Group. For those of you who might not know, Ei Group was once known as Enterprise Inns. The Slug & Lettuce chain-owner bought off Ei Group for an alleged £1.3bn.
At an event so big, the Chief Executive of Greene King, Mr. Nick Mackenzie had come forward with official statements on behalf of the organisation. In the statement shared with the press members, Mackenzie said that one of the many reasons why they have decided to go ahead with this deal is because both the companies share a common “business philosophy.” He further added that CKA has proven that they understand all the underlying strengths of Greene King. Therefore, the members at the latter company, they are welcoming the opportunity to work with the management team at present. They are excited at the given commitment to invest and evolve strategic goals through their businesses. They also want to further ensure that their work partnership undergoes a long and hearty growth and progression.
One of the directors at Greene King stated that the terms and conditions of the deal struck between the two companies were found to be fair and reasonable. They would, therefore, be recommending the same to the shareholders as well. In this case, it is the shareholders that will get the final vote in the partnership.