A takeover deal that will make Enterprise Inns the UK's largest pub company could lead to 100 jobs being axed, it emerged today.

Enterprise said it intended to switch head office operations of the Unique Pub Company in Thame, Oxfordshire, to its Solihull base following completion of the £609 million takeover.

But Enterprise declined to put a timetable on possible job losses as the deal still needs the backing of investors and UK competition officials.

News of the shake-up were contained in particulars sent to Enterprise shareholders ahead of a company meeting on March 30 to approve the acquisition of Unique.

The deal will double Enterprise's estate to more than 9,000 pubs, eclipsing Punch Taverns which became the largest UK pubs group following its takeover of Pubmaster in November.

Enterprise currently has a 16.8% stake in Unique and announced in January an agreement to buy all the remaining shares held by a private equity consortium led by Cinven.

Chief executive Ted Tuppen said the deal was "excellent" for shareholders and would enhance the quality of the group's pubs portfolio.

He said: "Our aim is to continue to improve the quality of the estate through working closely with our licensees, investing to improve the joint estates and disposing of poorer performing pubs."

Enterprise currently operates around 5,080 pubs after expanding through a series of acquisitions, including the Laurel pubs in 2002.

It will now add another 4,050 unbranded sites from Unique, although approximately 250 pubs will be sold to meet regulatory concerns.

Unique generated pre-tax profits of £61.7 million in the year to September 30 and the deal is expected to lift the profits of Enterprise in the first full year after completion.

Enterprise said today that trading since the start of the new financial year on October 1 had been strong and expected to post interim pre-tax profits "comfortably" in line with expectations.

Friday March 12, 2004