Philip Morris International recently announced its acquisition of a 14.7% indirect minority stake in the Eastern Company, the largest tobacco manufacturer in Egypt. The value of the deal was not disclosed. As part of the agreement, the two companies will explore potential areas of strategic cooperation, including heated tobacco device products. These devices heat tobacco instead of burning it to reduce harmful chemicals from combustion.
Fred de Veld, the company’s president for Southeast Asia, the Commonwealth of Independent States, the Middle East, and Africa, expressed excitement about exploring collaboration opportunities with the Eastern Company to provide Egyptian adult smokers with alternatives to traditional cigarettes. Despite its success in developed markets, Philip Morris is now focusing on expanding its market presence in developing countries, including Egypt.
Philip Morris’s Equus heated tobacco device is already a global leader, particularly in developed markets. This strategic investment in the Eastern Company marks an important milestone for both companies as they look to strengthen their positions in the tobacco market. Following the announcement, Philip Morris shares saw a 0.5% increase in value.
