British American Tobacco (BAT) and Rothmans International B.V., respectively British and Dutch companies, manufacture and sell cigarettes and other tobacco products throughout the world.
BAT is the second largest manufactured tobacco company in the world with 13% market share and Rothmans is the fourth with around 3% market share.
Thus BAT/Rothmans merger will be the second behind Philip Morris, who is world market leader with 17% market share.
There is genuine competition on manufactured tobacco market since other international and national companies also operate in this sector.
One can add that even if this new entity affects the manufactured cigarettes, the possible segmentation according to certain characteristics such as their presentation, their tobacco blend or taste does not lead to particular competitive aspects.
For these reasons, the European Commission decided that the merger did not create or strengthen a dominant position, and approved it.
This article is based and incorporates information provided by the European Commission (Press Releases) and is intended for general information. Specialist advice should be sought before acting on it.
BAT/ROTHMANS merger in the manufactured tobacco sector approved
