Japan Tobacco buying Bangladesh Akij's tobacco business for $1.5 billionStaff Writer | August 7, 2018
Japan Tobacco is buying the tobacco business of Bangladesh’s Akij Group for around $1.5 billion.
Acquisition Akij is Bangladesh’s second-biggest tobacco company
“With this investment, we continue to accelerate our expansion in emerging markets that matter, a key component of Japan Tobacco Group’s growth strategy,” Japan Tobacco said in a statement on Monday.
Akij is Bangladesh’s second-biggest tobacco company and holds about 20 percent of the cigarette market in the country, which is the world’s eighth largest cigarette market, according to the statement.
It has brands such as Navy and Sheikh and its tobacco business is profitable, Japan Tobacco said. The deal would add about 17 billion units to the Japanese company’s sales volume, it added.
The acquisition of the business, United Dhaka Tobacco Co, is expected to be completed in the third quarter of this year, pending regulatory clearance, Japan Tobacco said. ■