Philip Morris: EU clears planned acquisition
(CercleFinance.com) - The European Commission has announced that it has cleared the proposed acquisition of Swedish Match by Philip Morris International.
The Commission's preliminary investigation showed that SMD Logistics (the logistics arm of Swedish Match) held a dominant position in the supply of fuel, tobacco, smokeless products and related products in Sweden. The transaction could have led to foreclosure effects in Sweden, as SMD is the only distributor of fuel, tobacco, smokeless products and related products in Sweden.
To address the Commission's preliminary competition concerns, Philip Morris International offered to divest SMD Logistics.
The undertakings relate to the structural diversity of a stand-alone business, which completely removes the vertical links between the manufacture of tobacco and nicotine products and their distribution in Sweden.
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