Philip Morris buying 49 per cent stake in Algerian tobacco company
In this July 17, 2012 file photo, Marlboro cigarettes are displayed in Montpelier, Vt. (AP Photo/Toby Talbot, File)
Published Monday, September 30, 2013 9:27AM EDT
NEW YORK -- Cigarette seller Philip Morris is buying a 49 per cent stake in Arab Investors-TA for $625 million.
Philip Morris International Inc., whose brands include Marlboro, said Monday that the transaction gives it a nearly 25 per cent interest in the Societe des Tabacs Algero-Emiratie, a joint venture between Arab Investors-TA and Algerian state-owned Societe Nationale des Tabacs et Allumettes SpA.
The Societe des Tabacs Algero-Emiratie makes and distributes Philip Morris' Marlboro and L&M brands under a license.
Philip Morris views Algeria as a key region for possible future growth.
The purchase is expected to add to Philip Morris' earnings per share starting next year.