Greene King, whose brands include Hungry Horse, confirmed it is working on a deal to join forces with Chef & Brewer firm Spirit Pub Company.
The Bury St Edmunds-based brewer’s disclosure came amid reports that the company had made an offer of around 110p a share for Spirit, valuing the rival chain in the region of £725 million.
The company said: “In light of recent speculation, the board of Greene King confirms that it has approached the board of Spirit in relation to a potential combination of the two companies.” It did not provide further details.
Greene King, which dates back to 1799, has around 1,900 outlets with the majority being in its managed pub estate. Other brands include Loch Fyne Restaurants, while its beers feature Old Speckled Hen and Abbot Ale.
Spirit has more than 1,200 pubs across the country following its demerger from Punch Taverns in 2011. The managed estate comprises more than 750 sites.
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