Scandinavian Tobacco's cigar division, ST Cigar Group - proposed acquisition of certain cigar brands of British American Tobacco
Type of assessment
Informal Review
Reference
29020
Acquirer(s)
Scandinavian Tobacco's cigar division, ST Cigar Group
Target(s)
certain cigar brands of British American Tobacco
Industry
Tobacco
Summary
ST Cigar Group proposes to acquire 'Schimmelpenninck' and 'Mercator' cigar brands in Australia from British American Tobacco plc
Outcome of assessment
Not opposed
Total review days *
19
Commenced public review
19th July 2007
Date completed
14th August 2007
Market definition
The ACCC considered the proposed acquisition in the context of the national market for the supply of cigars.
Competition analysis
On 14 August 2007, the ACCC decided to not intervene in the proposed acquisition.
The ACCC considered that the proposed acquisition is unlikely to substantially lessen competition in the national market for the supply of cigars because ST Cigar Group is likely to be constrained by competition from other cigar manufacturers, particularly Swedish Match and British Amercan Tobacco (through the retained cigar brands), post-acquisition.
Review timeline
Date
Event
19th July 2007
ACCC commenced review under the Merger Review Process Guidelines. Market inquiries commence.
1st August 2007
Closing date for submissions from interested parties.
14th August 2007
ACCC announced it would not oppose the proposed acquisition.
* Total Review days = Total business days less public holidays and time during which the review was suspended.
