This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

The Deal: Philip Morris Inhales Mexican JV

NEW YORK (TheDeal) -- Philip Morris (PM) said Tuesday, May 21, it will acquire the remaining 20% stake in its joint venture Philip Morris Mexico SA de CV it does not own for about $700 million.

Phillip Morris will acquire the stake from Mexican joint venture partner Grupo Carso SAB de CV.

The deal is expected to be completed by Sept. 30, Philip Morris International said, at which time it will own 100% of its Mexican-based tobacco unit. The transaction is subject to approval by the Mexican antitrust authority.

The valuation was determined by a pre-agreed formula and could be adjusted based on Philip Morris Mexico's performance over a three-year period, which ends two years after completion of the sale. Phillip Morris International said its share of the total Mexican tax-paid cigarette business is 73.5%, with a volume of 33.6 billion cigarettes.

In 2007 Philip Morris International acquired an additional 30% stake in Philip Morris Mexico, a 50-50 joint venture between it and Grupo Carso, for about $1.1 billion.

Mexican billionaire tycoon Carlos Slim, one of the world's wealthiest people, founded Grupo Carso and sits on Philip Morris' board of directors. Philip Morris International said its relationship with Slim and Grupo Carso spanned more than three decades.

"We would like to express our profound gratitude to Carlos Slim Helú and Grupo Carso, with whom we have built a successful partnership that has positioned PMM as the leading tobacco company in Mexico," Philip Morris International CEO André Calantzopoulos said in the statement announcing the deal.

"After more than 30 years of a very successful partnership of great harmony and cooperation that led PMM to continuous market share growth in the Mexican tobacco market, it is now time to leave PMM in the hands of one of the best management teams and organizations in the world, led by Louis C. Camilleri and André Calantzopoulos," Slim said in the statement.

Philip Morris International's stock was trading at $94.46 a share in afternoon trading, down about half a percent and near its 52-week-high, giving it a market cap of nearly $155 billion.

Stock quotes in this article: PM, MO 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs