Philip Morris buying 49 per cent stake in Algerian tobacco company

BUSINESS

Philip Morris buying 49 per cent stake in Algerian tobacco company

The Associated Press Published Monday, September 30, 2013 9:27AM EDT

In this July 17, 2012 file photo, Marlboro cigarettes are displayed in Montpelier, Vt. (AP Photo/Toby Talbot, File)

Text:

NEW YORK -- Cigarette seller Philip Morris is buying a 49 per cent stake in Arab Investors-TA for $625 million.

Philip Morris International Inc., whose brands include Marlboro, said Monday that the transaction gives it a nearly 25 per cent interest in the Societe des Tabacs Algero-Emiratie, a joint venture between Arab Investors-TA and Algerian state-owned Societe Nationale des Tabacs et Allumettes SpA.

The Societe des Tabacs Algero-Emiratie makes and distributes Philip Morris' Marlboro and L&M brands under a license.

Philip Morris views Algeria as a key region for possible future growth.

The purchase is expected to add to Philip Morris' earnings per share starting next year.