CAMPAIGNERS have warned that Whitbread's bid to own the biggest pub chain in the country would be bad news for the local brewing industry.

The Campaign for Real Ale claim that the purchase of 3,500 pubs by Whitbread from Allied Domecq would be a major blow for the industry.

The move would mean that Whitbread would have to dispose of its brewing operation which employs 550 people at Samlesbury.

"This could lead to the closure of the Boddingtons Brewery in Manchester and to the sale of other plants to foreign interests," warned Mike Benner, of CAMRA.

"Continued moves towards consolidation may result in just two national brewers supplying more than 80 per cent of the market."

Although Whitbread and Allied have agreed the deal, other bids for the chain may come before it goes ahead.

CAMRA now believes the Office of Fair Trading should launch an immediate investigation into the sale.

Whitbread has not yet indicated what it would do with its brewing operation if the deal went ahead.

A management buy-out, flotation or sale are all possibilities.

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