Scandinavian Tobacco Group A/S - proposed acquisition of Swedish Match AB
Type of assessment
Informal Review
Reference
42410
Acquirer(s)
Scandinavian Tobacco Group A/S
Target(s)
Swedish Match AB
Industry
Tobacco
Summary
Scandinavian Tobacco Group A/S and Swedish Match AB proposed to merge their global cigar, pipe tobacco and accessories businesses.
Outcome of assessment
Not opposed
Total review days *
43
Commenced public review
24th June 2010
Date completed
30th September 2010
Public competition assessment
Scandinavian Tobacco Group Swedish Match - Public competition asessment - 25 October 2010 25th October 2010 MER10+3030.pdf (96.5 KB)
Undertakings
On 29 September 2010, the Australian Competition and Consumer Commission (ACCC) accepted an undertaking (the Undertaking) from Skandinavisk Holding A/S and Swedish Match A/B in relation to Scandinavian Tobacco Group A/S's proposed acquisition of Swedish Match A/B (the Proposed Acquisition).
The ACCC considered that in the absence of the Undertaking, the Proposed Acquisition would have had the effect or have been likely to have the effect of substantially lessening competition in relation to the market for the wholesale supply of cigars in Australia.
The aim of the Undertaking was to address these competition concerns by:
(a) the creation of a viable, effective, stand-alone independent and long term competitor for the retail supply of those products that form part of the divestiture business;
(b) ensuring that the approved purchaser of the divestiture business by the ACCC (Approved Purchaser) had the necessary assets, rights and obligations to compete effectively with the Parties. 29th September 2010 D10+3683588.pdf (4.3 MB)
On 18 March 2011, the ACCC consented to a variation to the s87B Undertaking given by Scandinavian Tobacco Group A/S and Swedish Match AB (together the Undertaking Signatories) on 29 September 2010.
The purpose of the variation was to reduce the audit reporting frequency from monthly to three monthly.
On 9 May 2012 the ACCC consented to the withdrawal of the s87B Undertaking on the basis that the sale of the divestiture business had been completed and any obligations to procure the transfer, grant, or provision of licences, permits, approvals, third party consents and transitional services necessary for the operation of the divestiture business had been fulfilled. 18th March 2011 D11+452752.pdf (115.7 KB)
The ACCC will not oppose the proposed acquisition of Swedish Match AB by Scandinavian Tobacco Gro...
Issued: 30th September 2010 Release # NR 207/10
Review timeline
Date
Event
24th June 2010
ACCC commenced review under the Merger Review Process Guidelines. Market inquiries commenced.
15th July 2010
Closing date for submissions from interested parties.
23rd July 2010
ACCC requested further information from the parties. ACCC timeline suspended.
3rd August 2010
Former proposed date of 26 August 2010 for announcement of ACCC's findings amended to allow for provision of further information by the merger parties. ACCC timeline remains suspended.
31st August 2010
Draft 87B undertaking proffered by the parties. ACCC commenced market inquiries. ACCC timeline recommenced.
10th September 2010
Closing date for submissions relating to draft 87B undertaking.
30th September 2010
ACCC announced it would not oppose the proposed acquisition, subject to a 87B undertaking accepted by the ACCC.
30th September 2010
87B undertaking accepted by ACCC.
9th May 2012
ACCC consented to withdrawal of 87B undertaking on the basis that the sale of the divestiture business had been completed and any obligations to procure the transfer, grant, or provision of licences, permits, approvals, third party consents and transitional services necessary for the operation of the divestiture business had been fulfilled.
* Total Review days = Total business days less public holidays and time during which the review was suspended.
