When PMI made a firm bid to buy Protabaco in Colombia most, including myself, thought the deal would not be turned down by the Colombian Government. We were wrong.
Now PMI (PHILIP MORRIS INTERNATIONAL) is asking Colombian regulators to reconsider their plan to buy Protabaco but it is not at all clear if the government will overturn its decision as PMI already owns what used to be rival Coltabaco – based in Medellin Colombia. Together they control 90%+ of the local Colombian market, which is around 20 billion sticks.
Colombia’s Superintendent of Industry and Commerce rejected PMI’s bid to buy Protabaco for $452 million.
Interestingly, does this open the door for rival BAT to gain entry into the Colombian market? We think it does. Watch this space or provide a comment.
Protabaco manufactures Mustang, Premier and President.