Summary
Philip Morris International Inc. (PMI) announced a significant move to acquire the remaining 20% stake in its Mexican tobacco business, Philip Morris Mexico, S.A. de C.V. (PMM), from Grupo Carso. This acquisition, expected to close by September 30, 2013, subject to regulatory approval, will result in PMI owning 100% of its Mexican operations. The transaction's final price is estimated at approximately $700 million, with a potential adjustment tied to PMM's performance over a three-year period. This move signals PMI's commitment to consolidating its operations and potentially unlocking further value from its Mexican market presence. Investors should note that the acquisition is projected to be immediately and marginally accretive to PMI's earnings per share starting in the fourth quarter of 2013. The involvement of Grupo Carso, which has an affiliation with a PMI director, Carlos Slim Helú, is disclosed. This 8-K filing provides transparency on a strategic operational decision that could impact the company's financial performance and market control in Mexico.
Key Highlights
- 1PMI to acquire the remaining 20% stake in its Mexican subsidiary (Philip Morris Mexico) from Grupo Carso.
- 2Transaction is expected to be completed by September 30, 2013, pending Mexican antitrust authority approval.
- 3The acquisition will give PMI full (100%) ownership of its Mexican tobacco business.
- 4Estimated purchase price is approximately $700 million, with a potential adjustment based on PMM's future performance.
- 5The deal is projected to be marginally accretive to PMI's earnings per share starting Q4 2013.
- 6Disclosure of affiliation: Carlos Slim Helú, a PMI director, is associated with Grupo Carso.