Philip Morris paid almost $3 billions for cigars
Altria corporation, which owns cigarettes company Philip Morris, paid $2,9 billions for cigar producer John Middleton, Associated Press reports. About $700 millions from this sum account for tax remissions. It is expected that the bargain would be finished by the end of the year.
John Middleton producers big cigars, made by machine. The volume of corresponding market in 2007 amounted to $5,3 millions. It is expected by the end of the year the gain of John Middleton would amount to $360 millions, and the operational profit would amount to $182 millions. Altria hopes that the purchasing will compensate digressive demand on cigarettes in United States of America. Earlier with the same purpose the company began to produce chewing tobacco under Marlboro brand name.
At the same time Altria corporation prepares to get rid of international department of Philip Morris. It is proposed that the division of the companies will take place at 30th of January. It will permit Philip Morris to work more active at the markets of developing countries without any restrictions, imposed by the American legislation.