TOBACCO GIANTS LOOKING AT CONSOLIDATION
By Adnews Staff
London-based British American Tobacco has agreed to buy Rothmans International for $11.3 billion. The move will make BAT the second largest global tobacco giant behind U.S.-based Philip Morris Cos. It is still unclear how the purchase could affect Canada. If the deal passes through the Competition Bureau, BAT would indirectly control 90% of the Canadian cigarette market. Currently, BAT owns 42.2% of Imasco Ltd. of Montreal, which in turn, owns all of Imperial Tobacco. Imperial has a 68% share of the cigarette market in Canada. Rothmans Inc., which is 71.2% owned by Rothmans International, has 23% of the market. Canadian advertising for Rothmans is handled by Saatchi & Saatchi Advertising of Toronto.
« Back Next »
Comments
blog comments powered by Disqus