EU clears Imperial purchase of Altadis

Nicole Mezzasalma

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Takeover cleared on condition that Imperial sells some of its brands

The European Commission has cleared Imperial Tobacco’s purchase of Spanish competitor Altadis for €12.8bn ($18.2bn) on condition that the British firm sells some of its rolling and pipe tobacco and cigar brands. As Imperial has already agreed to do so, the EC said: “In light of this commitment, the Commission has concluded that the proposed transaction would not significantly impede effective competition." The takeover consolidates Imperial’s position as the world’s fourth biggest tobacco company, after Altria/Philip Morris, British American Tobacco and Japan Tobacco.

Imperial CEO Gareth Davis said: "We are pleased that the European Commission has approved our proposed acquisition of Altadis, subject to the enlarged group divesting a small number of fine cut tobacco, pipe tobacco and cigar brands in certain European markets, including Interval fine cut tobacco in France. We always anticipated some divestments and, in the context of the overall combined portfolios, these will not materially adversely affect the operational and financial performance of the enlarged group."

Imperial Tobacco has yet to mention its plans for Altadis’ 50% shareholding in Spanish travel retailer Aldeasa, but Aldeasa co-owner Autogrill has reported that it will exercise its option to buy Altadis’ shares in the company if it is sold.