Published: October 1, 2013
Holding in Arab Investors-TA gives tobacco giant Algerian access.
Philip Morris International (PMI), which accounts for around 15.6% of the non-American cigarette market, has paid US$625mn for a 49% interest in United Arab Emirates-based Arab Investors-TA (AITA).
The acquisition gives the company a 25% stake in joint venture (JV) company Societe des Tabacs Algero-Emiratie (STAEM), which is 51% owned by AITA and 49% held by Algerian state-owned Societe Nationale des Tabacs et Allumettes, the country’s largest manufacturer of tobacco products.
PMI already has a relationship with STAEM; the JV manufactures and distributes its Marlboro and L&MBrands in Algeria, making PMI’s brand portfolio the second largest in the market. This acquisition should boost that position while giving PMI greater exposure to Egypt and other North African and Middle Eastern markets.