Japan Tobacco Inc. will seek more takeovers in 2009 to build on the 7.5 billion pound (USD 15 billion) purchase of Gallaher Group Plc.
President Hiroshi Kimura said in an interview on 29 August that further acquisitions “would be realistic in 2009”. The integration of Gallaher Group, the British maker of Benson & Hedges cigarettes purchased in April, will be completed in two years, he said.
Japan Tobacco, the world's third-largest cigarette maker, which is half-owned by Japan's government, was ‘monitoring’ opportunities and may move on an acquisition before 2009 if necessary, Kimura said. He did not speculate on possible targets.
The company's international tobacco sales rose 25 per cent to 273 billion yen (USD 2.35 billion) in the first quarter, led by revenue from Russia, Turkey, Iran and Spain. The company plans to spend an extra USD 100 million annually on advertising and promotional campaigns in its growing markets, Kimura said.