JT to buy tobacco biz assets of Philippine firm
August 23, 2017
TOKYO- Japan Tobacco Inc. said Tuesday it will buy assets related to the tobacco business of Mighty Corp., the second-largest Philippine tobacco company, for 52.6 billion pesos including value-added tax, or 117.8 billion yen.
JT aims to enhance its business in the Philippines and Southeast Asia by utilizing Mighty's production footholds and sales network across the country.
The Philippine firm's distribution network, manufacturing equipment, inventories and intellectual property related to its tobacco business will be transferred to JT by the end of September. JT will not take an equity stake in the company.
Mighty holds a 23 percent share in the Philippine market, which is the 10th largest in the world. The share rises to 27 pct when JT's sales are added.
The Japanese firm hopes to further expand the share after the purchase.
In 2016, Mighty posted sales of 42.1 billion yen and an operating profit of 1.3 billion yen.
JT has expanded its overseas operations vigorously through corporate acquisitions, as the Japanese market continues to shrink partly because of an increase in health-conscious consumers.
On Aug. 4, JT announced a plan to buy Indonesian cigarette company PT Karyadibya Mahardhika and its distributor for a total of one billion dollars. Jiji Press
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