TURKEY. Private bids for the Turkish state-owned tobacco monopoly Tekel and its other operating units, including liquor distribution and duty free shops, are set to close on 26 September.
The Turkish government said it plans to sell Tekel’s duty free and tobacco arms, and its liquor subsidiary (maker of the Turkish Raki anise drink) separately to maximise interest from investors. The liquor company is known as Alkollu Ickiler Sanayi ve Ticareti and the tobacco company as Sigara Sanayi Isletmeleri ve Ticareti.
As long ago as 1998, Tekel reported it had received approaches from four duty free operators, at the time when the government first embarked on a programme of reform, and Tekel began blending different types of tobacco and new non-monopoly partnerships were established in tobacco, salt and alcoholic beverages production.
Saresco of France (now Aelia), Weitnauer Holding, Gulf Center Trading from Dubai and Aldeasa submitted the first proposals five years ago to establish joint ventures to operate duty free shops in Turkey. This time around Gebr Heinemann, Aldeasa and other European operators are believed to be interested.
Philip Morris and Japan Tobacco are reported to be among the international groups interested in the sale of the Tekel tobacco operations, Turkish media reported this week.
Tekel has a 60% share of the Turkish tobacco market, and the Turkish state-owned monopoly has sales of approximately €2.5 billion (US$2.8 billion). Tekel airport and border duty free shops have annual sales estimated at US$21 million.
