There has been speculation in the UK press recently over a possible merger of two of the largest pub operators in the UK, Punch Taverns and Mitchells and Butlers.
In a statement Punch Taverns confirmed that it had approached Mitchells and Butlers with an all share offer that would result in a combined value of more than £9bn including debt - a total of 10,000 outlets would then be operated by the two companies, creating the biggest pub group in the UK.
Punch was unable to confirm how many gaming machines are held in these locations.
Under Punch’s proposal Mitchells and Butlers shareholders would get 50 per cent of the company as well as a cash sweetener of around £175m.
If the deal goes ahead, it could generate synergies of around £90m by taking out Mitchells and Butlers central costs.
The proposal, according to Punch, includes plans for a management and board structure for the combined company.
The company went on to say it believes the terms and structure of the combination are compelling to both Punch and Mitchells and Butlers shareholders and that there is substantial strategic rationale in combining the two businesses.
