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  1. ITV Report

Suffolk based Greene King agrees £2.7 billion sale to Hong Kong company

Greene King, which is based in Bury St Edmunds has agreed a £2.7 billion sale to Hong Kong real estate giant CKA

Greene King has 2,700 pubs, restaurants and hotels across the UK.

Suffolk based Greene King agrees £2.7 billion sale to Hong Kong company Credit: PA Wire

The company was founded in Bury St Edmunds in 1799 by 19-year-old Benjamin Greene

Shares in Greene King have surged after it announced the deal to sell its entire business to CKA Group.

CKA is a real estate group run by Hong Kong's richest family.

Suffolk based Greene King agrees £2.7 billion sale to Hong Kong company Credit: PA Wire

The deal offered a 51% premium on the value of shares in the brewer, which employs more than 38,000 staff.

Greene King has a well-invested estate in prime locations, leading brands, a rich history and a talented team of around 38,000 people serving millions of customers across the country every week. CKA is an experienced UK investor and shares many of Greene King's business philosophies. They understand the strengths of our business and we welcome their commitment to working with the existing management team, evolving the strategy and investing in the business to ensure its continued long-term growth."

– Nick Mackenzie, chief executive, Greene King

The deal needs to be approved by Greene King shareholders. The directors are recommending they vote in favour.

CKA says it believes Greene King is well positioned to capture the opportunities which lie ahead.

Unions say they'll be seeking an urgent meeting with the company.

This is a major takeover of a well-known British company which will have major ramifications. Our first priority is to seek reassurances for our members on future job security, and pay and employment conditions.We need to study this takeover in much greater detail before commenting in depth.”

– Unite regional officer Mark Jaina