C&C may downsize in UK if takeover bid fails

C&C could significantly downsize its English and Welsh operations if it fails in its bid to buy British bar owner, Spirit Pub Company.

Speaking on the back of what it called a “solid” set of first-half results — despite showing a near 3% annualised drop in operating profit and pulling its share price down by nearly 9% — the group’s management yesterday side-stepped rumours that they are looking for a partner to launch an all-cash bid for Spirit.

Chief executive, Stephen Glancey said that the resilience of C&C’s Irish and Scottish operation, which cover the Bulmers/Magners cider brands and the Tennent’s lager brand, in particular, provides the basis for sustainable profitability, a strong balance sheet and free cash flow; adding that the board is confident in its ability to finance such deals.