Categories
· Business (Tobacco)
non-USA, by Country
· Europe
Organizations
· MO
· RJR
· Nabisco
|
Jump to full article: The Wall Street Journal Interactive Edition, 2000-10-17
Intro: The European Commission on Tuesday cleared plans by Philip Morris Companies Inc. to acquire Nabisco Holdings Corp. in a $14.91 billion cash deal that will create one of the world's biggest consumer foods groups.
Announcing its decision Tuesday, the commission said the impact in Europe will be limited to chocolate confectionery in the Netherlands. It wasn't immediately clear whether the companies would have to shed some units as a result.
"There is sufficient competition from other multinational companies, local manufacturers and retailer brands,'' the commission said in a statement. . .
Once the Nabisco sale to Philip Morris is completed, R.J. Reynolds Tobacco Holdings Inc., based in Winston-Salem, N.C., will pay $30 a share, or $9.8 billion, to acquire Nabisco Group Holdings.
The holding company's sole asset is its 80.6% ownership of the food company, so it will become a cash-filled shell of $11.7 billion. Acquiring the holding company will give Reynolds, which was spun off last year by the holding company, $1.4 billion to $1.5 billion in cash, after liabilities, thereby bolstering the tobacco company's balance sheet.
With the Nabisco purchase, Philip Morris's Kraft unit will be able to retain its position as second-largest food company in the world, behind Nestle SA.
Jump to full article » |