Summary
Philip Morris International Inc. (PM) announced on January 5, 2011, that it will no longer proceed with the acquisition of Productora Tabacalera de Colombia, Protabaco, Ltda. The company had initially agreed to purchase 100% of Protabaco's shares for $452 million on July 10, 2009. The acquisition was contingent upon approval from the Colombian competition authority and satisfactory completion of due diligence. While the authority granted approval in October 2010, the conditions and constraints attached to this approval were deemed too burdensome by Philip Morris International, leading to the decision to abandon the transaction. This filing serves as an official notification of this development, detailing the reasons for the termination of the acquisition.
Key Highlights
- 1Philip Morris International Inc. (PM) has terminated its agreement to acquire Colombian cigarette manufacturer Protabaco, Ltda.
- 2The intended acquisition was valued at $452 million.
- 3The termination is due to burdensome conditions imposed by the Colombian competition authority, despite their initial approval.
- 4The original agreement to purchase Protabaco was made on July 10, 2009.
- 5Colombian competition authority approval was granted in October 2010, but with significant stipulations.
- 6The company has provided a press release dated January 5, 2011, as an exhibit detailing this event.