Japan Tobacco Inc. (JT) has signed an agreement to acquire the tobacco business of Akij Group, the second largest tobacco company in Bangladesh, JT said in a press release.

The purchase price is estimated at BDT 124.3 billion (EUR 1.288 billion) and the acquisition is expected to have been completed by the third quarter of fiscal year 2018, JT said.
Akij holds around 20 per cent of the cigarette market in Bangladesh, the eighth-largest cigarette market, with around 86 billion sticks. JT said volumes in the country are growing by about 2 per cent year-on-year.
“With this investment, we continue to accelerate our expansion in emerging markets that matter, a key component of the JT Group’s growth strategy. Akij’s substantial market share places us straight at the number two position in Bangladesh, which will expand our quality top-line growth. This transaction will also support our sustainable profit growth objectives in the mid- to long-term,” said Mutsuo Iwai, JT’s executive vice president, and president of the group’s tobacco business.