Currently, government-controlled tobacco product manufacturer Eastern Company holds a decades-long monopoly on the industry
(Mark Lennihan/AP)
Update: An official source from the Industrial Development Authority later announced that the tender is not put on hold indefinitely, and is expected to be postponed to April 18 or 20.
The source pointed out that the auction is of great importance to the national economy.
Looks like Egypt’s decades-old cigarette monopoly will stay a little longer as sources tell Reuters that the authorities have postponed a tender for the license to manufacture conventional and electronic cigarettes.
Two unnamed sources in tobacco companies were cited by Reuters, who told the news agency that an auction, to have been held on Tuesday, was postponed.
Currently, government-controlled tobacco product manufacturer Eastern Company holds a decades-long monopoly on the industry.
When the announcement for the new license came out, companies weren’t thrilled, as the government highlighted that Eastern Company would automatically own 24 percent of the new company that would be created. They also noted that there will only be one new license available for sale.
“What we understand ... is that the postponement is for an indefinite period ... Certainly, the conditions for the auction will be changed if it is held again,” one of the sources told Reuters.
Egypt’s Industrial Development Authority informed companies about the postponement a day before the deadline to lodge bids, the sources said, adding that some had asked authorities to halt the bidding round.
Previously, the article was headlined as "Cigarette production license tender postponed indefinitely," article title has been edited to clarify new update
