Manufacturer Marlboro bought Rothmans

The largest U.S. tobacco company Philip Morris, manufacturer of brand Marlboro, has agreed to purchase Canadian Rothmans for 2 billion Canadian dollars (1.96 billion U.S. dollars), reports Reuters. Before that Philip Morris had already owned 40 per cent of the shares on the second capitalization and volume production manufacturer of cigarettes in Canada. The proposal by Philip Morris - 30 Canadian dollars per share - 17 per cent higher than the average stock quotes Rothmans on the stock exchange over the past 20 days.

The transaction took place after the Rothmans admitted his guilt in the illegal importation schemes tobacco products in Canada and the U.S. in the 1989-1996 year. For these actions the company was fined more than $ 500 million.

While the profitability of tobacco business in the past 30 years in North America is steadily declining because of declining demand and higher excise tax on cigarettes and cigars, Rothmans and managed to overcome the tendency to stay afloat, largely through the production of cheap cigarettes. Profit company in 2007 amounted to 670 million dollars and for the year increased by 8 per cent.

This was the second major transaction in the global tobacco industry this year. Earlier, British American Tobacco acquired a controlling stake in the Danish Skandinavisk Tobakskompagni for 4.1 billion dollars.

Philip Morris International - one of the largest tobacco companies in the world. It produces such cigarette brands as Marlboro, L & M, Chesterfield and others. Outside the U.S. company owned 15.6 per cent tobacco market. Philip Morris Revenues in 2007 amounted to 55 billion dollars.