The Clap
Eastern Tobacco’s General Assembly approved the company’s acquisition of a 24% stake in United Tobacco, the Egyptian arm of tobacco giant Philip Morris.
The deets
United Tobacco won Eastern Tobacco’s tender for obtaining a new cigarette manufacturing license. Among the terms of the tender was that Eastern Tobacco would acquire 24% of the new company.
Why this matters
Eastern Tobacco explained that its 24% stake in the new company’s capital should compensate for expected losses due to the presence of a new competitor.
