The fusion of two of the biggest Bosnian tobacco companies, Fabrika Duhana Mostar and Fabrika Duhana Sarajevo, is expected to occur.

The director of the crisis-hit tobacco company, Fabrika Duhana Mostar, in the southern town of Mostar, Bakir Pekusic, has confirmed in the national daily newspaper, Dnevni Avaz, that there have been talks going on about a strategic tie with Fabrika Duhana Sarajevo in the Bosnian capital. Fabrika Duhana Mostar stopped its production a month ago due to a financial crisis affecting the company. Fabrika Duhana Sarajevo has drawn up a plan to restructure the company in Mostar by using new technologies that will make it more competitive in the market. (cen)