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Article: Japan Tobacco Buying Gallaher for $14.7B
- Article from:
- AP Online
- Article date:
- December 15, 2006
CopyrightCopyright 2006 Associated Press/AP Online. This material is published under license from the publisher through YellowBrix, Alexandria, Virginia. All inquiries regarding rights should be directed to YellowBrix. (Hide copyright information)
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TOKYO - Japan Tobacco Inc., the world's third biggest cigarette company, is buying Britain's Gallaher Group PLC for about $14.7 billion in a deal that gives the maker of Mild Seven cigarettes a bigger stake in the Western European market. The deal would reportedly be the biggest Japanese overseas acquisition.
The move comes as Japan Tobacco, which already is the overseas distributor for Winston, Camel and Salem cigarettes, tries to bolster earnings by expanding outside of Japan, which has seen declining smoking rates. Like many tobacco companies worldwide, Japan Tobacco has also been looking to diversify outside cigarettes.
The deal would take Japan Tobacco into a Western Europe market ...