TWO of the UK's largest brewery chains today announced they were considering merging, sparking fears about job losses in Sussex.

Whitbread confirmed it is in talks with Allied Domecq UK about a £2.75 billion merger.

The move would mean Whitbread would control Allied's 3,500 pubs and restaurants across the UK, including 378 Big Steak restaurants and 188 Firkin pubs.

There are several Firkin pubs and Big Steak restaurants employing dozens of workers in Crawley, Brighton, Worthing and Eastbourne.

A distribution plant employing more than 50 workers is also based at Worthing Road, Horsham.

But a spokesman for Allied said negotiations were still at an early stage and job losses were not in the pipeline.

The deal would see Whitbread take on 1,300 tenanted pubs and over 2,000 managed pubs and restaurants.

Included in the sale would be Allied's 370 Big Steak pub-restaurants, which Whitbread would add to its 380 Brewers Fayre and 250 Beefeater pub-restaurants.

And Allied would also sell its 188-strong chain of Firkin pubs.

The deal would also give Whitbread complete control of the First Quench off-licence business - currently a joint venture with Allied.

And finally Whitbread would take on Allied's 25 per cent stake in Britvic, bringing its holding in the soft drinks firm to 50 per cent.

The value of the Allied businesses have been estimated at up to £2.75 billion.

The enlarged Whitbread estate would total 7,000 pubs, contravening ownership rules, so it is expected to separate its brewery operation to win clearance.

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