C&C brew up merger with Spirit Pub Company
MAGNERS cider maker C&C said a tie-up with Spirit Pub Company would transform the business amid suggestions the pair should consider a three-way merger with Greene King.
C&C, responding to Chef & Brewer owner Spirit’s rejection of its approach thought to be worth about 110p a share, argued that shareholders would benefit from cost savings and better distribution.
The interesting development would be for all three businesses to combine
Spirit, up 1p to 107¼p, is already in talks with Greene King having signalled its conditional support for an offer from the Old Speckled Hen brewer. But analysts suggested a “strong gravitational pull” for C&C chairman Sir Brian Stewart and chief executive Stephen Glancey, both formerly at Scottish and Newcastle, towards S&N properties now owned by Spirit.
C&C, which has until November 20 to make a bid, said: “C&C believes that a combination of its brands with Spirit’s high-quality pub estate is the most effective way to optimise shareholder returns.”
Canaccord Genuity analyst Nigel Parson said: “The interesting development would be for all three businesses to combine. The result would be a leading pub company and brewer.”
