The U.K.'s competition authority said there are reasonable grounds for believing that proposals by Heineken Holding N.V. (HEIO.AE), or a modified version of them, might remedy concerns it has over the Dutch brewer's 305 million pound ($397.3 million) acquisition of 1,900 Punch Taverns PLC (PUB.LN) pubs.
The Competition and Markets Authority has until Aug. 22 to consider the undertakings, though it could decide to extend the deadline to Oct. 17, if necessary. The CMA said it would undertake a public consultation as part of its preliminary investigation.
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If the authority rejects Heineken's proposed undertakings, the acquisition would be referred for an in-depth investigation, the CMA said on Tuesday.
"We welcome confirmation from the CMA that only a small number of pubs are required to be sold. It's a sensible outcome and good news for pub-goers across the U.K. who will see the benefit of well invested pubs in their communities," a spokesperson for Heineken said.
--Ian Walker contributed to this article
-Write to Razak Musah Baba at email@example.com; Twitter: @Raztweet
(END) Dow Jones Newswires
June 27, 2017 07:25 ET (11:25 GMT)