RSS   Newsletter   Contact   Advertise with us

Japan Tobacco buying Bangladesh Akij's tobacco business for $1.5 billion

Staff Writer | August 7, 2018
Japan Tobacco is buying the tobacco business of Bangladesh’s Akij Group for around $1.5 billion.
Bangladesh tobacco
Acquisition   Akij is Bangladesh’s second-biggest tobacco company
The 124.3 billion taka ($1.5 billion) deal, the biggest ever involving a Bangladeshi company, according to Thomson Reuters data, comes after Japan Tobacco agreed in March to buy Russia’s Donskoy Tabak for about 90 billion rubles ($1.42 billion).

“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.