The US cigarette manufacturer Philip Morris has announced its intention to increase its stake in Cigatam, the Mexican cigarette maker, from 29 to 50 per cent

The transaction is worth around US$ 400 million and still depends on a final decision by Mexico’s competition commission. Cigatam’s licence to produce Philip Morris brands has been extended from the year 2000 to 2020.
Cigatam sales totalled 5.1 billion pesos (around US$ 640 million) in 1996, although sales of smuggled cigarettes from the US affected this result; the company is partly owned by the Mexican conglomerate Grupo Carso.