A new reign for Greene King?

Unite is seeking urgent meeting with the new owners of Greene King, the UK’s largest pub and brewery firm, following an announcement that it is to be taken over by a Hong Kong-based multinational.

CK Asset Holdings, owned Hong Kong’s richest man Li Ka-shing, will pay £2.7bn for the 220-year-old brewer and shoulder the firm’s £1.9bn debt – bringing the total cost of the takeover to £4.6bn.

Founded in 1799, Suffolk-based Greene King operates around 3,000 pubs, restaurants and hotels, including the Chef & Brewer and Hungry Horse chains, as well as producing a number of beer brands.

Unite has more than 250 members are at the firm’s headquarters in Bury St Edmunds, Suffolk, as well as distribution centres in Abingdon, Oxfordshire and Eastwood, Nottinghamshire.

‘Jobs safe’

In a statement, CK Asset Holdings said it will not cut jobs and would retain the Greene King apprenticeship scheme.

It stated, “CK greatly values the skills, knowledge and expertise of Greene King’s existing management and employees and therefore does not intend to make material changes with regard to the continued employment of the employees and management of the Greene King Group, including the conditions of employment or the balance of skills and functions of the employees and management.

“Nor does CK intend to initiate any material headcount reductions within the Greene King organisation as a result of the Acquisition, although it is expected that each of the Greene King non-executive directors will resign as directors of Greene King on or shortly after the effective date.”

Unite regional officer Mark Jaina said the union will be seeking an urgent meeting with Greene King, as well as with the management of CK Asset Holdings to gain a better understanding of the future business strategy.

“This is a major takeover of a well-known British company with a long history in brewing and pub ownership built up over 220 years. It could have major ramifications for this sector, given the magnitude of the takeover,” Jaina said.

“Our first priority is to seek reassurances for our members on future job security, and pay and employment conditions. However, we need to study this takeover in much greater detail before commenting further.”