UK pub group Mitchells & Butlers said it had acquired rival operator Orchid Group for £266m in cash, in a deal which it expects to lead to a double digit boost to earnings. 

The company, which operates pubs such as All Bar One, said last month it was in exclusive talks to buy the majority of the activities of Orchid. 

Mitchells & Butlers is buying 173 Orchid pubs in a deal which will provide cost savings and annual synergies of at least £6m.