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$17 Billion for Altadis

Published on July 19th, 2007 16:07

Imperial Tobacco has won the battle for Altadis finally and agreed to buy it for 12.6 billion euros, or 17 billion dollars. Now British-based enterprise Imperial Tobacco Group added to its brand portfolio such well-known brands as Gauloises cigarettes and Cohiba cigars.

As the shareholders have delivered the final decision this acquisition will be regarded as the greatest one in the tobacco industry in Europe and will end a four-month take-over battle with CVC Capital Partners, a private-equity firm. CVC has yet to say whether it plans to top Imperial’s proposal.

Companies’ profile: Altadis, S.A. is a Spain-based company, involved in the tobacco industry. The Company comprises three business units. The Cigarettes unit produces and markets dark and white cigarettes under the Fortuna, Anfa, Brooklyn, Colt, Fine, Fox, Iris, Marquise, News, Nobel, Popilarne, Royale, Smart, Spike, Casa Sports, BN, Ducados, Gitanes and Habanos brand names. Further on it offers tobacco for rolling. The Cigars unit produces and markets a variety of cigars ranging from small-format, machine-made models to hand-rolled cigars. The brand names include Cohiba, Don Diego, Flor de Cophan, H. Upmann, Hoyo de Monterrey, Jose Piedra, La Gloria Cubana, Longchamp, Montecristo, Partagas, Pleiades, Quintero, Romeo y Julieta, Santa Damiana, Vegafina, Antonio y Cleopatra, Backwoods, Ducados, Dutch Masters, Dux, Entrefinos, Farias, Guantanamera and Flur de Savane.

Imperial Tobacco, a multimillionaire British enterprise, was established in 1901,at present it is operating in130 countries and duty-free markets that mainly are presented by United Kingdom, Germany, The Netherlands, Belgium, the Republic of Ireland, France, Spain, Greece, Poland, Ukraine, Russia, Australia, Taiwan, and sub-Saharan Africa. Its key brands are international strategic cigarette brands like Davidoff and West, popular with British smokers Lambert & Butler, fine cut tobacco Drum and rolling paper brand Rizla. Approximately 14,428 employees work for the Imperial Tobacco, making it a continuously growing company.

Fight for Altadis acquisition lasted several months at least . The Imperial Tobacco’s offer for 45 euros per each share didn’t satisfy the Spain-based company, sustaining that Altadis worth much. Now they’ve come to agreement of 50 euros in cash for each Altadis share.

However, Imperial Tobacco knows for what they are fighting for. As sustained company’s chief executive Gareth Davis “(the takeover) significantly enhances our operating platform and scale with an increased presence in profitable mature markets and improved emerging market opportunities.”

Now, Imperia Tobacco gains influence on tobacco markets in Russia and Morocco, also influential revenue comes from Spain and France. Altadis is a successful growing company known and respected for its premium cigar and cigarette products.

In conclusion it can be presupposed that this joint venture will be profitable and beneficial for both parts and companies will continue to delight the tobacco smokers with different qualitative smoking products.