JTI completes Mighty acquisition

Tokyo-based Japan Tobacco, Incorporated (JTI) said its Philippine unit has completed the acquisition of the homegrown cigarette-maker Mighty Corporation.

In a statement, the world’s third biggest tobacco company said that JTI Philippines acquired the Bulacan-based cigarette firm for R46.8 billion, or approximately $936 million.

“Japan Tobacco, Inc. (JT) announced today [late Thursday] that the JT Group has completed the acquisition of assets related to the tobacco business of Mighty Corporation,” the company said in a statement posted on its website.

“The acquisition is in line with JT 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’,” it added.

JTI added its acquisition of Mighty Corp. will not have any material impact on JT Group’s consolidated performance for the fiscal year 2017.

Last week, Finance Secretary Carlos G. Dominguez III welcomed the approval of the Philippine Competition Commission (PCC) of the Mighty Corp.-JTI deal, noting it entails quick funding for the rehabilitation of war-torn Marawi City and the modernization of the Armed Forces of the Philippines (AFP).

Dominguez said the government was expecting around R30 billion in windfall tax revenues from the deal between the Japanese tobacco manufacturer and the Bulacan-based cigarette company.

"We appreciate PCC's quick action as this will mean that the taxes and penalties due to the Government will flow into its coffers as scheduled," said Dominguez in a mobile text message sent to reporters, referring to the Philippine Competition Commission. (CSL)