Wholesaler Pitt & Co. Ltd. has taken over the tobacco and cigarette division ot Tobacco Associates Ltd. giving the company a monopoly in the market.

Pitt & Co. general manager Ken Hockenhull said the worldwide market for cigarette products had declined 25 percent over the last ten years and the two companies had fixed costs to deal with on the Island. The purchase would allow Pitt & Co. to cut costs.

Mr. Hockenhull said the 12 employees at Tobacco Associates will be given an opportunity to apply for up to five vacancies currently open at Pitt & Co.

He said Pitt & Co. will now be able to hold tobacco prices stable at the wholesale level. Ultimately consumers will benefit.

"The purchase will lead to stability in wholesale prices,'' he said yesterday. "There is sufficient retail competition that prices will remain competitive.'' Pitt & Co. are also in the food wholesaling and snack vending businesses. The company has been operating for 103 years.

"The purchase forms a very good base for the company for the future,'' Mr.

Hockenhull said. "It forms some solidity from which we will be able to plan the future expansion of the company.'' The sale will be effective at the close of business on October 30.

Tobacco Associates president Edgar Wilkinson did not want to comment on the sale. However, he did say he was going to retire from the company.