Compass Lexecon Advises TDR Capital in Cleared Pub Merger

In February 2020, the UK Competition and Markets Authority ("CMA") approved Stonegate Pub Company's anticipated acquisition of EI Group (formerly Enterprise Inns), subject to commitments proposed by the merging parties. The £3 billion transaction between the two pub groups was not found to raise potential national concerns, however, after an analysis of the potential impact of the merger in more than 500 local areas, the CMA identified significant competition concerns in 51 local areas. The merging parties proposed undertakings - the divestment of 42 sites - to overcome the specific local concerns.

Compass Lexecon assisted TDR Capital, the private equity firm that owns Stonegate Pub Company, in relation to the merger proceedings before the CMA. We analyzed the competitive impact of the transaction. In particular, we conducted a catchment area analysis by producing isochrones around the merging parties' pubs to study the local overlaps. We also advised TDR on its proposed remedy package based on this local overlap analysis.

The Compass Lexecon team, led by Neil Dryden, included Scott Holbrook, Daniel Westrik, Gwilhem Charbonnier, Pawani Malhotra, Juho Anttila, Richard Kamp and Nicolas Grimprel.