January 6, 2011 - Philip Morris International Inc. today, January 5th announced that it would no longer pursue its intention to acquire Productora Tabacalera de Colombia, Protabaco Ltda. While approval to proceed with the acquisition was granted by the Superintendent of Industry and Trade of Colombia in October 2010, the approval was subject to several significant conditions and constraints that ultimately proved to be too burdensome.
Background:"After an exhaustive review of our options, we regretfully have concluded that the transaction, in light of the conditions, would not satisfy the strategic and financial objectives that were originally envisaged and therefore we have decided not to pursue the acquisition of Protabaco," said James Mortensen, President, Latin America & Canada Region.
October 7, 2010 - PMI - can acquire Colombia's Protabaco but with several significant conditions and constraints - decision under review..
June 16, 2010 - Philip Morris International Inc. (PMI) plans to appeal a Colombian regulator's decision to deny its $452 million bid to acquire privately owned cigarette maker Productora Tabacalera de Colombia, or Protabaco. (Philip Morris International to appeal Colombia's rejection of proposed Protabaco acquisition..)
Friday, July 10, 2009 PMI said it would pay $452 million to buy privately owned Protabaco, a Colombian cigarette maker expanding its presence in the South American continent. (Protabaco manufactures and sells cigarettes, cigarillos and cigars either in our own brands or private label.) (PMI to buy Columbia cigarette maker - Protabaco..)
Protabaco is the second largest tobacco company in Columbia with about 32-percent market share and registered a turnover of around $108 million in 2008. The company has three cigarette plants in Columbia and its leading brands are Mustang, Premier and President.
The purchase of Protabaco needs regulatory approval and is expected to be completed within six months, New York-based PMI said on July 10th.
"Colombia continues to be an important market for us and our commitment to the country and our employees remains steadfast," he added.
It is interesting to note:
In 2005 and 2006, Philip Morris acquired Colombia's largest cigarette maker, Coltabaco, for a little more than $300 million.
Reference: Philip Morris International Inc. (PMI) Ends Pursuit of Colombian Acquisition, SOURCE: Philip Morris International Inc.. BUSINESS WIRE, 1/5/2011.