CIGoutlet.NET News: NZ commerce watchdog still studying tobacco merger

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NZ commerce watchdog still studying tobacco merger

08/07/99

The New Zealand Commerce Commission said on Sunday it was continuing to investigate domestic competition issues surrounding the global merger between British American Tobacco (BAT) and Rothmans International , despite their divestment plans.

The competition watchdog said in January it would look into the merger -- completed in June to form the world's second largest cigarette company -- as their combined share in New Zealand would be in excess of 96 percent. ``Our view is that it appears that BAT and Rothmans are not divesting enough assets to prevent dominance,'' Commission Acting Chairman Mark Berry said, referring to BAT and Rothmans plans to sell tobacco brands and a cigarette factory to Britain's Imperial Tobacco Plc.

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