EU clears Imperial's buy of Altadis

0 Comments | AFP, October, 2007

BRUSSELS (AFP) — The European Commission on Thursday gave the green light to the purchase by Britain's Imperial Tobacco of Franco-Spanish competitor Altadis.

Citing its fair competition rules, the EU's executive Commission said the clearance was conditional on the British company giving up some of its rolling and pipe tobacco and cigar brands, which it had agreed to.

"In light of this commitment, the Commission has concluded that the proposed transaction would not significantly impede effective competition."

Imperial Tobacco will pay 12.8 billion euros (18.2 billion dollars) for the maker of Gauloise cigarettes. The amount comes to 16.2 billion euros if Altadis' debt is taken into consideration.

The EU's executive body said the new entity would have...