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Philip Morris offers EU concessions in $16 billion Swedish Match deal
Global Banking & Finance Review®
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BRUSSELS (Reuters) – Marlboro maker Philip Morris has offered concessions to address EU antitrust concerns over its $16 billion bid for tobacco and nicotine products maker Swedish Match, a European Commission filing showed on Wednesday.
BRUSSELS (Reuters) – Marlboro maker Philip Morris has offered concessions to address EU antitrust concerns over its $16 billion bid for tobacco and nicotine products maker Swedish Match, a European Commission filing showed on Wednesday.
The EU competition enforcer did not provide details of the concessions in line with its policy. It will seek feedback from rivals and customers before deciding whether to accept them or demand more.
The Commission extended its deadline for a decision to Oct. 25 from Oct. 11. Companies typically offer remedies during the preliminary review if they are confident that the EU antitrust watchdog will accept them.
The Commission had been expected to clear the deal unconditionally but no final decision had been made, people close to the matter said on Tuesday.
The deal, which has been cleared in the United States and Brazil, is complex and EU regulators have to take into account the scope and characteristics of the European market, another person said.
(Reporting by Foo Yun Chee, Editing by Louise Heavens)
Antitrust refers to laws and regulations that promote competition and prevent monopolies in the marketplace. These laws aim to ensure fair competition and protect consumers from unfair business practices.
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, upholding treaties, and managing the day-to-day operations of the EU.
An antitrust concern arises when a business practice may reduce competition in a market, potentially leading to monopolistic behavior or harm to consumers, prompting regulatory scrutiny.
A merger is a business strategy where two or more companies combine to form a single entity, often to enhance market share, reduce competition, or achieve operational efficiencies.
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