Japan Tobacco Will Buy Gallaher for $19 billion
Gallaher Group Plc was a British Tobacco maker. In the most expensive ever acquisition by a Japanese company, Japan Tobacco puffed up almost $19 billion. (2.25 trillion yen).
Japan Tobacco has their eye on Western Russia and the Eastern European market.
Industrialized economies have seen tobacco sales decline. It comes with education and people realizing how stupid it is to smoke.
However, JT sees opportunity in developing areas.
Japan tobacco is the world's third-largest tobacco maker with a 7.8% market share in 2005. Gallaher was fifth with a 3.1% share.
Philip Morris has a 17.9% market share as number one and British American Tobacco is number two with 12.2%.
If the JT acquisition goes through, the company will move closer to being the number two lung cancer causer in the world.
Oh, boy!
What do you think?
