C&C confirms end of Spirit pursuit, leaving way clear for Green King

C&C, which makes Magners, Bulmers and Gaymers ciders as well as Tennent's lager, said a combination with Spirit no longer met its acceptable valuation.

Previously, it had said a deal to buy Spirit, which it described as one of the highest quality pub estates in the UK, would transform the Irish company and enhance long-term shareholder value by improving revenue and cost savings, giving the combined business more strategic and operating options, and other benefits. It said a deal was "most effective way to optimise shareholder returns in a competitive UK market".

The Dublin-based company said it no longer intended to proceed with an offer "as a combination with Spirit no longer meets the group's risk adjusted return criteria".

In October C&C made an initial approach to Spirit and was in talks about a possible offer before pub group and brewer Greene King stepped in with a £723m bid that Sprit accepted with conditions.

This was later, after Spirit deflected a bigger bid from C&C worth 115p per share, increased by Green King to a £773.6m firm bid.

Analysts said the potential savings from a tie-up between C&C and Spirit were likely to be limited, while savings from a combination of Spirit and Greene King would be material.