Philip Morris and Japan Tobacco to buy 40% of largest tobacco distributor in Siberia
Philip Morris and Japan Tobacco Inc. are each buying 20% of the shares in Megapolis Distribution BV, which owns the largest tobacco distributor in Russia and Siberia, according to a statement from Philip Morris International that Sib.fm’s correspondent examined on 5 December.
It is expected that the deal will be concluded before the end of the year, with JTI and Philip Morris each paying $750 million.«The transaction is expected to be completed before the end of 2013 without additional approval from the regulatory agencies,» says the statement.
Megapolis is one of the leading consumer goods distributors in Russia, specialising mainly in tobacco products and beverages. The company employs about 15,000 workers, while the number of outlets covered by its direct delivery system exceeds 150,000.
Megapolis distributes about 70% of all cigarettes sold in Russia through contracts with Philip Morris International, Japan Tobacco International and Imperial Tobacco Group.
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The Megapolis website indicates that the company has more than 30 branches and sub-branches in the Siberian Federal District.