PMI buys remaining shares of PM Mexico

Philip Morris International will buy Grupo Carso’s 20 percent share in Philip Morris Mexico (PMM)) for approximately $700 million. The purchasing price is subject to a potential adjustment based on PMM’s performance over three years ending two fiscal years after the closing of the purchase.

The transaction, which will give PMI a 100 percent share in PMM, is expected to be completed by Sept. 30, 2013, subject to the approval of the Mexican antitrust authority.

PMI’s relationship with Grupo Carso, and its founder Carlos Slim Helú, spans more than 30 years. “We would like to express our profound gratitude to Carlos Slim Helú and Grupo Carso, with whom we have built a successful partnership that has positioned PMM as the leading tobacco company in Mexico,” said André Calantzopoulos, CEO of PMI.

“We have benefited greatly from our partnership with Grupo Carso and we remain confident in our ability to excel in this important market in the years ahead,” added James Mortensen, PMI’s president, Latin America and Canada Region.

“After more than 30 years of a very successful partnership of great harmony and cooperation that led PMM to continuous market share growth in the Mexican tobacco market, it is now time to leave PMM in the hands of one of the best management teams and organizations in the world, led by Louis C. Camilleri and André Calantzopoulos,” said Slim Helú, who is also a member of PMI’s board of directors.

In 2012, PPM held a 73.5 percent share of Mexico’s 33.6 billion-stick cigarette market. PMI’s flagship brand, Marlboro, is the leading brand in Mexico with a 2012 market share of 53.6 percent.