Protabaco in play?

A recent trip to Colombia has revealed Protabaco may be in play – And you guessed it the main suitors are rumored to be BAT and PMI.

The Colombian economy is doing very well and with a total market of around 20 billion sticks this is a good market to be in for a multinational.

Protabaco represents one of the last great independent companies operating in Latin America with good market presence, a well-known brand portfolio and strong management team. It would be the jewel in the crown for either company.

Who do you believe will acquire Protabaco?

Do you think this is a good fit?

When do you expect this to happen?

If you have a comment, or news; we’d like to know…………………

8 comments ↓

#1 Farrell Delman on 11.13.07 at 4:16 AM

Unless Colombia has nothing in the way of anti-trust law, the $310 million acquisition of Coltabac by Philip Morris in 2005 would seem to preclude PMI from being able to purchase Protabac since these are the only two major players in Colombia, right?

#2 Tatler on 11.14.07 at 9:49 PM

The anti-trust issue may not be such a problem in Colombia as would first appear. BAT has a market share of around 20% all of which is imported and there are other abeit small producers in Colombia. In neighboring Ecuador some years ago PMI acquired the RJ Reynolds factory effectively creating a monopoly. BAT Chile also enjoys a market share of 96%.

#3 MST on 11.15.07 at 3:50 PM

The brilliant story about Protobac has been there US subsidiary General Tobacco and its ability to move the Bronco 4th tier brand, but GT has now become legitimate through its becoming an SPM in the MSA. So Protobac is indirectly an SPM in the US market and cranking out tons of cigarettes in the process, something the owners want to cash in now before the OPM’s grow further share.

#4 Tatler on 11.21.07 at 10:42 AM

BAT really needs to aquire Protabaco for several reasons.

If PMI acquires Protabaco it will own the majority of the Colombian market as it does in Ecuador.

BAT hasn’t made an acquisition recently and none in the region since acquiring Tabaclalera Nacional in Peru which they later closed.

#5 Tatler on 11.21.07 at 10:42 AM

Are we sure General Tobacco is owned by Protabaco?

#6 Johnie Jay on 05.23.08 at 1:08 AM

Can any one tell me do they see more tobacco coming from South American countries in today’s environment. Isn’t it much cheaper? How much does it cost in tobacco to make a cigarette?

#7 Peres on 07.09.09 at 7:37 PM

Protabaco does not own General Tobacco, these are 2 totally seperate entities.

#8 Myron Hurwitz on 07.10.09 at 2:20 PM

Well, the deal’s been closed: PMI is buying out Protabaco (Sources: http://www.marketnewsvideo.com/?id=200907pm071009&mv=1 & http://finance.yahoo.com/news/Philip-Morris-International-apf-3129215910.html?x=0&.v=1 )

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