Punch becomes biggest pub group in UK

Two of Britain's biggest pub companies have been thrown together in a move that will see Punch become the biggest pub group in the country.

The latest monster merger, which was announced today (Thursday), will see Punch buy Pubmaster for £1.2bn.

It is the latest in a wave of feverish consolidation of the pub industry and comes just one week after Spirit Group rubber-stamped its purchase of 1,400 managed pubs from Scottish & Newcastle for £2.5bn.

Before today, Punch was the second biggest pub company in the UK behind Enterprise Inns and Pubmaster was fourth, after Unique.

The Punch estate will now move up to a staggering 7,500 pubs. Although it takes the number one slot as the biggest pub group, the merry-go-round is set to continue.

Enterprise Inns owns a small stake in Unique and has secured an option to buy it. It looks set to press the merger button next spring to create a 9,000-strong giant.

News of this latest deal was met with surprise and some concern by licensees. Jeanette Feneron, licensee at the Crown Inn in Banningham, Norfolk, has been with Pubmaster for 11 years.

She said: "This move does concern me. I have always had a very good relationship with Pubmaster - they have been very supportive. I might become fully tied - I am only tied for beer at the moment - and my profits might drop off."

The news came as Punch unveiled full year profits up 22 per cent to £113m, on sales of £429m.

Punch expects to sell on just over 200 pubs to appease competition concerns; as a result of the Pubmaster deal it will own more than 25 per cent of pubs in some areas of the UK.

Both Giles Thorley and John Sands will speak at The Publican Conference on November 13. For ticket information call Emma Gauthier on 020 8565 4451.