Philip Morris International (PMI) will buy a stake in Societe des Tabacs Algero-Emiratie for about USD 625 million (EUR 463 million).

PMI today announced to acquire 49 per cent of the shares of United Arab Emirates-based Arab Investors-TA (AITA), which in turn owns 51 per cent of the Societe des Tabacs Algero-Emiratie venture. Algeria’s state-owned Societe Nationale des Tabacs et Allumettes SpA, the leader in the Algerian market, owns the rest of the venture.

Miroslaw Zielinski, PMI’s President, Eastern Europe, Middle East & Africa Region and PMI Duty Free, said that with an estimated cigarette market of 30 billion units, Algeria holds "tremendous potential for future growth". Also, the new partnership with the UAE-based investors opens "additional business opportunities in Egypt and certain other North African and Middle Eastern markets where there is potential for further expansion”, said Zielinski.

PMI said this equity investment in AITA will provide PMI with enhanced earnings from Algeria and is projected to be accretive to PMI’s earnings per share as of 2014.

Societe des Tabacs Algero-Emiratie, with which PMI has had a successful partnership since 2005, manufactures and distributes under license PMI’s Marlboro and L&M brands. (ci)