GREENE King has bought a London pub chain for £70 million, beating rivals Fuller, Smith and Turner to the deal.
The Capital Pub Company accepted Greene King’s offer after rejecting a £54 million takeover approach last month by Fullers.
The combined business will operate 250 pubs in the Greater London area.
Under the terms of the deal, Capital Pub’s shareholders will be entitled to 235 per share.
The new deal is Greene King’s third takeover in 2011 following the purchase of RealPubs and Cloverleaf earlier in the year.
Directors at Greene King see the acquisition of The Capital Pub Company as an opportunity to create an even stronger pub retailer, tapping into the lucrative premium eating and drinking out market in London.
Rooney Anand, Chief Executive Officer of Greene King, said: “The proposed acquisition represents another firm step as we continue to expand our presence in London.
“Capital Pubs would bring in a further 34 premium pub assets and take our Greater London estate to approximately 250 at a time when London is outperforming the national pub market.
“The offer represents a fair price for a high quality, largely freehold pub estate.
“Capital Pubs is a premium London pub company that fully meets our criteria as we continue to progress our retail expansion strategy.
“Capital Pubs’ estate fits well within the Greene King portfolio and we intend to combine it with our recently aquired Realpubs business, thereby generating attractive cost and revenue synergies.”
Clive Watson, Chief Executive Officer of Capital Pubs, said: “Greene King is an excellent cultural fit with Capital Pubs and will be a good home both for the business and for our staff.
“Greene King is renowned for nurturing the businesses it aquires and I have every confidence that Capital Pubs will continue to develop under its ownership.
“We have recommended Greene King’s deal to shareholders as we believe it reflects both our high quality business and its products.”