StockMarketWire.com - Britain's competition regulatory has raised concerns that a £1.27bn takeover of pub group Ei by Stonegate could damage competition in 51 local areas.

The Competition and Markets Authority, however, found the deal did not raise raise UK-wide competition concerns.

The companies were given until 13 December to suggest ways to overcome the concerns raised at the local level.

If they couldn't sufficiently address those concerns, the merger would be referred for an in-depth second-phase investigation, the authority said.

Ei said in a separate announcement that the parties would put proposals to the authority and that they were confident that these would address its concerns. Story provided by StockMarketWire.com