Merger of Tobacco Giants Approved

Source from:  tobaccojournal.com 03 Nov 2008 11/04/2008

Hongyun Group and Honghe Group have officially obtained go-ahead from the State Tobacco Monopoly Administration to form a new entity named Hongyun Honghe Tobacco Group. Hongyun and Honghe had signed a merger agreement in August this year. The new company, to be operational on 8 November, will become the world's fourth largest tobacco company after Philip Morris, British American Tobacco and Japan Tobacco. Hongyun Honghe Tobacco, with sales of more than 4 million boxes of tobacco per year, will have production facilities in Kunming, Qujing, Honghe, Shaotong, Huize in Yunnan province as well as facilities in Xinjiang and Inner Mongolia. Hongyun Group and Honghe Group, together with Hongta Group, are the three biggest tobacco companies in Southwest China's Yunnan province. Industry analysts indicated the merger is considered as another move in strengthening the fragmented tobacco industry in China. Enditem