Purchase approved

The Philippine Competition Commission (PCC) has approved Japan Tobacco International’s (JTI) acquisition of Mighty Corp. from the Wongchuking family, reports The Philippine Star.

The PCC said sufficient competitive constraints remain from other market participants after the php46.8 billion ($914.3 million) sale.

Mighty is the second largest tobacco company in the Philippines, with a 23 percent share of the country’s market, next to market leader Philip Morris Fortune Tobacco Co., which has 71 percent share. JTI currently accounts for 4.2 percent of cigarette sales in the Philippines.

Mighty’s assets include three operating plants, a state-of-the-art tobacco processing plant and two cigarette manufacturing facilities.

The firm holds a leading position in the value segment, which accounts for more than 50 percent of the industry volume, with local brands such as Mighty and Marvels.

According to JTI’s earlier disclosure, Mighty’s gross sales reached php18.8 billion last year. Operating profit amounted to P600 million.