A Japanese tobacco company buys a Russian branch company for 1.56 billion USD

The Japan Tobacco Inc. (JTI), the world’s third largest tobacco company, buys the Russian Donskoy Tabak company for 1.56 billion USD to strengthen its leading role on the Russian tobacco market.

The Japanese company’s share on the Russian market will increase to about 40 percent, due to the transaction.

Japan Tobacco expects the deal to be closed at the beginning of the third quarter.

Japan Tobacco spent about 2 billion USD for acquisitions in Asia last year and plans more acquisitions this year to offset its decline in sales in Japan. (MTI)