Philip Morris to own 100% of its Mexican business
The final purchase price, currently estimated to be approximately $700 million, will be determined by a pre-agreed formula. It is subject to a potential adjustment based on PMM's actual performance over three years ending two fiscal years after the closing of the purchase.
The transaction, as a result of which PMI will own 100% of PMM, is expected to be completed by September 30, 2013, subject to the approval of the Mexican antitrust authority, and is projected to be immediately marginally accretive to PMI's earnings per share as of the fourth quarter of 2013.
"We would like to express our profound gratitude to Carlos Slim Helú and Grupo Carso, with whom we have built a successful partnership that has positioned PMM as the leading tobacco company in Mexico," said Andre Calantzopoulos, chief executive officer of PMI.
"After more than 30 years of a very successful partnership of great harmony and cooperation that led PMM to continuous market share growth in the Mexican tobacco market, it is now time to leave PMM in the hands of one of the best management teams and organizations in the world, led by Louis C. Camilleri and Andre Calantzopoulos," said Carlos Slim Helu on behalf of Grupo Carso.
In 2012, PMI's market share of Mexico's total tax-paid cigarette industry volume of 33.6 billion cigarettes was 73.5%. PMI's flagship brand, Marlboro, is the leading brand in Mexico with a market share in 2012 of 53.6%. ■