Heineken has bought all outstanding debt of Globe Group in the UK, but the brewer lowered the value of the firm's pub network to reflect tough conditions in the country's on-trade.

Heineken said today (23 December) that it has acquired all of Globe's remaining syndicated bank debt at an undisclosed discount to the GBP175m (US$279m) face value.

The move means Heineken will remove Globe's debt, with a face value of GBP230m, from its balance sheet.

The brewer will report a one-off gain of EUR215m before tax following the deal, although EUR84m of this was realised in the first half of 2009. 

Heineken has a 30-year beer supply deal with Globe's 425 pubs; a deal the Netherlands-based brewer took on as part of its takeover of Scottish & Newcastle UK in 2008.

In October, Heineken rescued Globe from collapse. The brewer provided GBP180m to a company named EPB Pub Company in order for it to acquire the Globe estate, after the pub business broke financial covenants.

Heineken said today that it has lowered the value of Globe's pub network by EUR80m before tax, reflecting a UK on-trade suffering from pub closures and falling beer sales.