Skandinavisk Holding A/S - s.87B undertaking

Company or individual details

  • Skandinavisk Holding A/S
  • Swedish Match A/B
    081215321

Undertaking

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 is to address these competition concerns by:

  • 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;
  • ensuring that the approved purchaser of the divestiture business by the ACCC (Approved Purchaser) has the necessary assets, rights and obligations to compete effectively with the Parties in the wholesale supply of cigars; and
  • ensuring the Approved Purchaser has the ability to manufacture and supply the products that form part of the divestiture business independently of the Parties and ensuring that any interim supply, toll manufacturing or technical assistance arrangements with the purchaser will be at arm's length and on terms no less favourable than normal commercial terms.
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.

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