BAT granted approval for Scandinavian Tobacco purchase

Results of survey
A	36.1 %
B	7.2 %
C	27.7 %
D	10.8 %
E	8.4 %
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Andrew Pentol

3-Jul-2008

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The European Commission has approved the acquisition of Scandinavian Tobacco’s cigarette business

The European Commission has approved British American Tobacco’s (BAT) acquisition of the cigarette business of Scandinavian Tobacco and some of its snus and ryo tobacco interests.

Approval has been granted on the condition that BAT agrees to sell a small number of local brands, primarily in Norway. The sale of these brands should not affect the financial or operational performance of the enlarged BAT group once the transaction is complete.

As a result of the transaction BAT will control 60% of the cigarettes market in Scandinavia, giving its subsidiaries additional annual sales of about 30bn cigarettes. It will also give the group market leadership in Denmark and Norway, representing one-third of the Swedish market, and will elevate it from fourth- to second-biggest cigarette supplier in Poland, with about one-third of sales.

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