Philip Morris International to buy Canada's Rothmans

0 Comments | AFP, July, 2008

NEW YORK (AFP) — Philip Morris International said Thursday it has struck a friendly matchup with Canadian tobacco company Rothmans Inc. in a two billion Canadian dollar (1.9 billion) takeover deal.

PMI, the global cigarette maker and distributor of leading brand Marlboro, already owns a 40 percent stake in Rothmans, Benson & Hedges (RBH).

Rothmans Inc.'s sole holding is its 60 percent interest in RBH, whose brands include Rothmans, Benson & Hedges, Craven A and Belmont.

PMI and Rothmans have been joint shareholders of RBH since 1986.

The takeover offer of 30 Canadian dollars per share represents a 14 percent premium to Rothmans's closing share price Wednesday, PMI said in a statement.

The New York-based company said the agreement and related...