The Philippine unit of Philip Morris International and Fortune Tobacco Corp will combine their operations in a new company in which both firms will have equal interest.

Philip Morris Philippines Manufacturing Inc and the local industry leader Fortune Tobacco, which is owned by one of the country's richest men, Lucio Tan, said on Thursday they would combine their operations to form a new company called PMFTC, said Chris Nelson, president of Philip Morris Philippines. The deal, of which no further financial details were given, will unite the two firms' Philippine distribution and manufacturing operations. Lucio Tan will be chairman of the new company while Philip Morris will manage day-to-day operations, Philip Morris said in a statement.
Fortune Tobacco is one of the five largest privately owned cigarette companies in the world and competes mainly in the low-end market with its leading brands Fortune and Champion. PMPM operates mainly in the premium brand market. Fortune Tobacco holds about 60 per cent of the Philippine market and Philip Morris has 28 per cent. About 85 billion cigarettes are sold in the Philippines each year, according to Philip Morris. (pi)