LONDON — The U.K. Office Of Fair Trading said Thursday it has decided not to further investigate pub groups’ business models and practices, ending a months of uncertainty over their future viability and sending shares in pubs sharply higher.
The OFT said “further investigation of competition problems within the beer and pub market is not warranted.”
A probe could have taken another two years and resulted in major changes to tenanted pub groups’ business models. Astaire Securities analyst Mark Brumby said the ruling would “come as a huge relief to the pub companies.”
Mr. Brumby said that between 15% and 50% of the income of pub companies such as Punch Taverns and Enterprise Inns PLC could have been threatened if an investigation had gone ahead. “But the up-to 24 months of investigation and uncertainty is what would have really done the damage,” he said.
To read more go to: The Wall Street Journal
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