LONDON (ShareCast) - The European Commission has approved British American Tobacco's £2bn purchase of the cigarette businesses of Skandinavisk Tobakskompagni as long as it sells some local brands.
Dunhill and Lucky Strike owner BAT must offload a small number of brands, mainly in Norway, which should not materially affect the financial or operational performance of the enlarged group, said the EC.
The deal will give BAT additional annual sales of about 30bn cigarettes. ST accounts for more than 60% of cigarette sales in Scandinavia and is sold in around 40 markets.
In February, BAT said it would buy ST’s cigarette and snus business in exchange for its existing 32.35% stake and the payment of £1.15bn.
British American Tobacco expects the acquisition to complete shortly.
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