Tobacco giant Phillip Morris buys big stake in Algerian market

Sep 30 2013 - 9:56am



NEW YORK -- Cigarette seller Philip Morris is buying a 49 percent 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 percent 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.

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.

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