THE FAS RUSSIA APPROVES PHILIP MORRIS/KT&G MERGER WITH REMEDIES

On August 6, the FAS Russia approved the merger between Philip Morris Products SA and Korean KT&G Corporation.

Philip Morris and KT&G Corporation agreed to conclude a joint venture agreement on the joint implementation of innovative nicotine-containing products (products made of heated tobacco and devices for their consumption) in the territory of the Russian Federation under the KT&G brands.

Alongside with the decision, the FAS issued remedies to companies aimed at ensuring competition in the nicotine-containing products market.

When making the decision, the FAS Russia took into account the fact that Philip Morris is one of the largest companies in the market for both tobacco and innovative nicotine-containing products in the world and in Russia. The strengthening of the company's market power is compensated by the conditions set in the remedies of the FAS Russia.

To read the full decision of the FAS Russia please follow the link: http://en.fas.gov.ru/documents/documentdetails.html?id=15360