Scottish & Newcastle is hoping to raise over £2 billion by auctioning its entire pub estate.

The sale of its retail division would include 1,500 pubs and restaurants, as the group looks to concentrate upon its brewing empire.

S&N has announced an agreed bid of £278 million for cider makers HP Bulmer and is in advanced talks to acquire control of Portuguese brewer Sociedade Central de Cervejas.

The group has abandoned its plans to enter into a sale and leaseback of around 700 of its 1450 sites. Potential buyers for the group, which as a pub landlord is a significant purchaser of fresh produce, include; Pubmaster, Spirit, Punch and entrepreneur Hugh Osmond.

S&N retail has an annual turnover of almost £1bn and employs more than 30,000 people.