Japan Tobacco buys Philippine firm

Japan Tobacco is buying a Philippine firm to expand its presence overseas. Mighty Corporation is the Philippines’ second-largest tobacco company.

JT will pay about 940 million dollars for its distribution network, trademark rights and other assets.

The Japanese firm says the deal gives it more than a quarter of the tobacco market in the Philippines.

JT is becoming more active outside Japan as the domestic market shrinks. This is the second time JT has signed a major acquisition deal in Southeast Asia, following one in Indonesia.

JT is looking at buying more companies in the region as well as in other areas such as South America.

Source and image: NHK