PMI Agrees to Raise Mexico Stake

Source from:  tr.itsmyiq.com Jul 19, 2007 07/20/2007

Philip Morris International said yesterday that it had reached an agreement in principle to acquire an additional 30 per cent stake in its Mexican tobacco business from its joint venture partner, Grupo Carso, S.A.B. de C.V. 'PMI currently holds a 50 per cent stake in its Mexican tobacco business and this transaction would bring PMI's stake to 80 per cent,' the company said in an announcement posted on its website. 'Grupo Carso would retain a 20% stake in the business as part of this reorganization. The acquisition is part of PMI's strategy to pursue business growth both organically and through business development opportunities. 'The transaction has a value of approximately US$1.1 billion and is expected to be completed later this year, subject to execution of definitive agreements and customary regulatory approvals.' "Today's announcement demonstrates our ongoing commitment to Mexico and our confidence in the future of our business in Latin America," said Andre Calantzopoulos, president and CEO of PMI. "Our relationship with Grupo Carso and its founder, Carlos Slim Helú, has proven to be extremely successful and we look forward to further growth of our business in Mexico," added Miroslaw Zielinski, president for the PMI Latin America and Canada region. Carlos Slim Helú will continue to serve as an advisor to Philip Morris Mexico, S.A. de C.V. and will remain an active partner in the business. Total cigarette industry volumes in Mexico amounted to about 48 billion pieces last year, for which PMI accounted for about a 63.5 per cent share and for which Marlboro alone accounted for about 47.8 per cent. Enditem