Tobacco competitors file complaint against Eastern Co.s conditions booklet

ArabFinance: Several tobacco manufacturers filed a formal complaint with the Federation of Egyptian Industries tobacco division to scrap the conditions booklet the Industrial Development Authority (IDA) had issued for the license auction, Al Shorouk News cited Head of the Division Ibrahim Imbaby.

The companies asked for forming an independent committee bringing together the finance and public Enterprises Ministries, the Egyptian Competition Authority (ECA), the IDA and the Tobacco Division to lay down guidelines for the new conditions booklet.

On March 22^nd, Eastern Company (EAST) uncovered its conditions booklet issued by the IDA for the auction of the new license.

The IDAs conditions help in protecting the companys market share, as it aims at by preventing the new company from producing cigarettes at the same price point as the monopolys mass-market Cleopatra brand, which accounts for 98% of Easterns total revenues.

On March 21^st, the tobacco manufacturer announced that the IDA has invited companies to enter into the tobacco industry through tendering a new cigarette production license.

The company could own 24% of the to-be-established company without paying its share in the cost of the license.

The listed company reported a 14% Year on Year increase in its net profit in the second half of 2020, recording EGP 2.538 billion.

Eastern Company is an Egypt-based company, which is engaged in manufacturing tobacco products. The companys product portfolio includes cigarettes, cigars, pipe tobacco, and molasses tobacco, as well as other related products such as cigarettes filter rods and homogenized tobacco.