Japan: Japan Tobacco to buy Philippine cigarette maker Mighty

Japan Tobacco said on Tuesday, August 22, it would buy the Philippines’ No. 2 cigarette maker Mighty for approximately US$936 million, its second large deal in Southeast Asia this month as it deepens its push into emerging markets.

The acquisition will help Japan Tobacco, which sells the Winston, Mevius and Camel brands in the Philippines, challenge the local dominance of PMFTC, a venture owned by a Philip Morris International and unlisted Fortune Tobacco.

Facing a shrinking smoking population at home, the world’s fourth-biggest cigarette maker this month announced it would buy an Indonesian maker of “kretek” tobacco and clove cigarettes, together with its distributor, for US$677 million. Including debt, the deal was valued at around US$1 billion.

Japan Tobacco said it expects the deal will allow it to take advantage of expanded distribution networks, a strengthened brand portfolio and more than a 25% share of a market in “a country with robust economic growth.”

Full Content: Financial Times

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