One of the UK's largest pub groups has become even bigger with an �875m ($1.3bn) deal to buy a further 1,900 pubs.

Enterprise Inns, which already runs about 3,500 pubs, has agreed to buy the new properties from its rival Laurel, which was formed last year when the former brewer Whitbread sold off its entire pub estate.

The deal follows the sale of the UK pub estate of Japanese bank Nomura to a group including Enterprise for �2bn ($2.86bn) last month.

The latest deal will give Enterprise a greater presence in the affluent south east of England, with 1,000 of Laurel's pubs being in that region.

Profits up

"This proposed acquisition represents an excellent fit with our existing portfolio and further enhances the size, quality and potential of our estate," said Enterprise chairman Hubert Reid.

The deal will be funded through new debt and a rights issue, the company said.

Enterprise also announced a sharp rise in first half profits to �46.2m, up 76% on the same period last year.

It said it expected another year of "solid progress".

At 0815 GMT, Enterprise shares were down 2.5% at 794.5p.