Greene King breaches deal with Office of Fair Trading over Laurel merger

Greene King has flouted undertakings agreed during its merger with Laurel's neighbourhood pub division in 2004, and could now face court action and a fine.

The company's purchase of 432 pubs from Laurel was not referred to the Competition Commission on the understanding that the company would sell 13 pubs in areas where Greene King would have a stranglehold.

If the pub, which is in the Oxford area, is not sold by 22 June - and after a consultation process between the OFT Greene King and interested parties - the OFT will go to court to gain an enforcement order to force the sale.

A spokesman for Greene King said they hoped to sell the offending property shortly.

The OFT said Greene King's failure to meet its obligations would not bias any future investigations.

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By Chris Druce

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