28 May 2009
Scandinavian Tobacco Group A/S (STG) (previously Skandinavisk Tobakskompagni A/S) has acquired several Norwegian tobacco brands in the roll-your-own (RYO) and cigarette segments from British American Tobacco (BAT) – among them first and foremost the Tiedemanns brand.
With the acquisition, Scandinavian Tobacco Group will gain an approximate 30% share of the large Norwegian market for rolling tobacco.
The products are first and foremost Tiedemanns Rød, Tiedemanns Gul and Tiedemanns Lys, but the Teddy, Mento and Mentolett brands are also included in the deal.
The acquisition is a consequence of the EU Commission's approval of the sale to BAT of STG's cigarette and certain RYO activities in summer 2008. As a condition of approval, the Commission required that BAT dispose of the predominant part of the roll-your-own activities in Norway, in order to prevent BAT gaining too strong a position on the Norwegian market. The deal is thus effectively a repurchase of part of the activities STG sold to BAT in summer 2008.
Likewise as a consequence of the Commission's requirements, BAT sold the Petterøe’s brand in November 2008 to Philip Morris International, and with the sale of Tiedemanns to STG, BAT has now complied with the Commission's requirements regarding the sell-off in Norway.
Tiedemanns' rolling tobacco is already being produced under contract at STG's factory in Holstebro, where production will also be carried out henceforth. BAT Norway will handle distribution on the Norwegian market of the Tiedemanns products and the other acquired brands.
STG's acquisition of the Tiedemanns brands was conditional on the approval of Scandinavian Tobacco Group as the buyer by the EU Commission and the Norwegian competition authorities. Those approvals were given, and the acquisition is now a reality.
STG acquires Norwegian brands
With the acquisition, Scandinavian Tobacco Group will gain an approximate 30% share of the large Norwegian market for rolling tobacco.
The products are first and foremost Tiedemanns Rød, Tiedemanns Gul and Tiedemanns Lys, but the Teddy, Mento and Mentolett brands are also included in the deal.
The acquisition is a consequence of the EU Commission's approval of the sale to BAT of STG's cigarette and certain RYO activities in summer 2008. As a condition of approval, the Commission required that BAT dispose of the predominant part of the roll-your-own activities in Norway, in order to prevent BAT gaining too strong a position on the Norwegian market. The deal is thus effectively a repurchase of part of the activities STG sold to BAT in summer 2008.
Likewise as a consequence of the Commission's requirements, BAT sold the Petterøe’s brand in November 2008 to Philip Morris International, and with the sale of Tiedemanns to STG, BAT has now complied with the Commission's requirements regarding the sell-off in Norway.
Tiedemanns' rolling tobacco is already being produced under contract at STG's factory in Holstebro, where production will also be carried out henceforth. BAT Norway will handle distribution on the Norwegian market of the Tiedemanns products and the other acquired brands.
STG's acquisition of the Tiedemanns brands was conditional on the approval of Scandinavian Tobacco Group as the buyer by the EU Commission and the Norwegian competition authorities. Those approvals were given, and the acquisition is now a reality.