SWITZERLAND. Philip Morris International (PMI) has announced it has reached an agreement in principle to acquire an additional +30% stake in its Mexican tobacco business from joint venture partner Grupo Carso. The move will take PMI’s stake to 80%, with Grupo Carso owning the remaining 20%.
The acquisition is part of PMI’s strategy to pursue business growth both organically and through business development opportunities, said the company.
The transaction has a value of approximately US$1.1 billion and is expected to be completed later this year, subject to the completion of definitive agreements and customary regulatory approvals.
“The announcement demonstrates our ongoing commitment to Mexico and our confidence in the future of our business in Latin America,” said PMI President and CEO Andre Calantzopoulos.
Added PMI President for the Latin America and Canada region Miroslaw Zielinski: “Our relationship with Grupo Carso and its founder, Carlos Slim Helú, has proven to be extremely successful and we look forward to further growth of our business in Mexico.”
The total cigarette industry volume in Mexico was approximately 48 billion units in 2006, with PMI’s flagship brand Marlboro having a 47.8% share and the company claiming a total market share of 63.5%.
Carlos Slim Helú will continue to serve as an advisor to Philip Morris Mexico and will remain an active partner in its Mexican tobacco business.
About Philip Morris International
Philip Morris International, based in Lausanne, Switzerland, held a 15.4% share of the international cigarette market in 2006. Its brands, led by Marlboro and L&M, are sold in over 160 countries around the world. Philip Morris International is an operating company of Altria Group. For more information, visit www.philipmorrisinternational.com.
