INTERNATIONAL cigarette giant Japan Tobacco Inc has completed its acquisition of the assets of home-grown manufacturer Mighty Corporation, paving the way for the full payment of 30 billion pesos (Bt19.5 billion) to the Philippine government as part of the agreement to settle the latter’s unpaid tax dues.
“The acquisition is in line with Japan Tobacco Group’s geographic expansion for sustainable growth.
“It also provides a nationwide distribution network in the Philippines and strengthens the group’s brand portfolio with the addition of local brands such as Mighty and Marvels,” JTI said in a statement on Thursday.
JTI said it bought 46.8 billion pesos in assets of Bulacan-based Mighty.
It added that the transaction will not have any material impact on Japan Tobacco Group’s consolidated performance for fiscal 2017.
JTI’s products are sold in more than 120 countries. Its popular brands are Camel, LD, Mevius, Natural American Spirit and Winston.
Last week, the Philippine Competition Commission approved JTI’s acquisition of Mighty, which the anti-trust body said was “not likely to result in anti-competitive effects in the market”.
“There appears to be no ability nor incentive for the parties to engage in anti-competitive coordinated behaviour. Sufficient competitive constraints remain from other market participants after the sale,” the PCC said.
“In the transaction, JTI Philippines will own the sales and distribution network, manufacturing and equipment and inventories of Mighty, while Japan Tobacco International, an affiliate of JTI Philippines, will own the trademarks and associated intellectual property of Mighty and Wong Chu King Holdings Inc.
“JTI Philippines is a company engaged in the business of importation, manufacturing, distribution and marketing on wholesale basis of tobacco products, while JTI is a global company engaged in the manufacture and sale of tobacco products,” the PCC also said.