The government rebuffed an offer by three tobacco companies to set up a central product distribution network, saying it stands by its earlier decision awarding the concession to two competitors, the Budapest Business Journal said.

Hungarian units of Imperial Tobacco, Philip Morris International and Japan Tobacco International had complained there was no competitive bid process before making a counter offer. British American Tobacco and Taban Trafik, a unit of Hungary’s Continental Tobacco were awarded the concession by the National Development Ministry to supply tobacco products to state-licensed retailers. As many as 1,200 jobs may fall victim to the consolidation, the journal reported.