Japan Tobacco (JT) is in talks to acquire Mighty Corp for PHP 45 billion (EUR 775 million) in a deal which would allow the Philippine cigarette maker and tobacco processor to settle its substantial tax liabilities, Reuters said.

Mighty Corp, in a letter to the Philippine Department of Finance, offered to pay PHP 25 billion in unpaid taxes from 2010-2016 and disputed cigarette duty, the tax office said. The letter said the settlement would be funded by the sale of facilities and trademarks of Mighty and its affiliates, the revenue agency said in a statement. “We are studying the offer,” said Finance Secretary Carlos Dominguez. Reuters cited a JTI spokesperson confirming the takeover talks.