Philip Morris International gains minority stake in Egypt's biggest tobacco plant
Date
5/23/2024 5:47:27 AM
(MENAFN) Philip Morris International, the world's leading tobacco company by market value, made a significant announcement on Wednesday regarding its Acquisition of an indirect minority stake of 14.7 percent in the Eastern Company, Egypt's largest tobacco manufacturer. The exact value of the deal remains undisclosed by Philip Morris.
In the wake of this acquisition, both Philip Morris and the Eastern Company are poised to explore potential avenues of strategic cooperation. This collaboration will encompass various aspects, with a particular focus on heated tobacco device products. These innovative devices function by heating tobacco rather than burning it, thereby mitigating the production of harmful chemicals typically associated with combustion.
Philip Morris's Equus heated tobacco device stands as a global market leader, albeit primarily popular in developed markets. However, the company is actively seeking to expand its presence in developing markets, including Egypt, by introducing cost-effective tobacco heating devices. This strategic move aligns with Philip Morris's broader objectives of diversifying its product offerings and catering to the evolving preferences of adult smokers worldwide.
Fred de Veld, President of Philip Morris International for Southeast Asia, the Commonwealth of Independent States, the Middle East, and Africa, expressed enthusiasm regarding the collaboration with the Eastern Company. He emphasized the mutual interest in exploring potential areas of cooperation, particularly in providing adult smokers in Egypt with alternative options to traditional cigarettes. This sentiment underscores Philip Morris's commitment to offering consumers safer and more innovative alternatives to conventional tobacco products, ultimately contributing to public health initiatives and regulatory compliance efforts within the tobacco industry.
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