Tobacco group Philip Morris to take full control of Mexican arm in $700m deal

US tobacco group Philip Morris International Inc (NYSE:PM), or PMI, said it will take full control of its Mexican unit through the purchase of the remaining 20% in Philip Morris Mexico SA de CV (PMM) from Grupo Carso SAB de CV (OTCMKTS:GPOVY).

PMI, who worked in partnership with Grupo Carso in Mexico for more than 30 years, said the final price, estimated at some USD700m (EUR542.3m), will be calculated based on a pre-agreed formula and will be subject to adjustments based on the unit’s future performance for two fiscal years after the closing of the transaction.

The maker of top cigarette brand Marlboro expects to complete the deal by 30 September 2013, anticipating it to contribute to its EPS from the fourth quarter of this year, it said.

Philip Morris claims a 73.5% share of Mexico’s tax-paid cigarette market for 2012, when its flagship brand Marlboro led the market with a 53.6% share.