The watchdog will assess whether Heineken’s proposed acquisition of part of the Punch Taverns pubs portfolio could reduce competition and choice for customers.

Heineken UK announced in December 2016 that it had agreed a back-to-back deal with Vine Acquisitions to acquire Punch Securitisation A (Punch A), which is made up of around 1,900 pubs across the UK.

Since entering into the UK pub market in 2008, Heineken has expanded its estate to 1,049 leased and tenanted pubs.

The proposed deal will see Heineken pay £305m for the shares in Punch A and was originally due to be completed by the end of the first half of 2017.

However, the first phase of the CMA’s investigation is currently scheduled to last until 24^th April 2017.

If the CMA finds the acquisition could reduce competition, it will launch an in-depth merger investigation, which lasts up to 24 weeks, unless merging parties offer undertakings which address any competition concerns identified.

Those who have an interest in the acquisition have until 2^nd March to submit their views to the CMA.