Punch Taverns tie-up with drinks company Constellation Brands given the go ahead

The Office of Fair Trading (OFT) has given the green light to a tie-up between the UK’s largest pub company and the world’s largest wine merchant, Constellation Brands.

In a statement today the OFT said on the current information available it would not be referring the deal to the Competition Commission.

Announced in April, Punch and Constellation Europe (the division of Constellation Brands formed in April 2004 through the merger of Constellation Wine Europe and Matthew Clark) plan to form a holding company with 50/50 ownership of Matthew Clark.

The joint venture values the wholesaler and distributor at £120m with Punch matching Constellation’s retained investment of £35m.

The remaining balance of £50m exists as non-recourse debt (a secured loan linked to collateral).

Steve Thomson, current director of wholesale at Matthew Clark, will continue to run the business independently.

Matthew Clark is the sole wine distributor to JD Wetherspoon.

Office of Fair Trading questions Punch and Constellation deal >>

Punch and wine company Constellation form joint venture >>

Punch Taverns rules out REIT in short term >>

Punch Taverns company profile >>

By Chris Druce

E-mail your comments to Chris Druce here.