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Philip Morris to acquire 49% interest in Arab Investors-TA for $625M

Philip Morris announced its entry into a definitive agreement to acquire 49% of the shares of United Arab Emirates-based Arab Investors-TA for $625M. Through its acquisition of 49% of the shares of AITA, PMI will secure an almost 25% economic interest in the Societe des Tabacs Algero-Emiratie, a joint venture which is 51% owned by AITA and 49% by the Algerian state-owned Societe Nationale des Tabacs et Allumettes SpA, the market leader. STAEM manufactures and distributes under license PMI’s Marlboro and L&M brands, which together hold a significant share of the international trademarks sold in Algeria. This equity investment in AITA will provide PMI with enhanced earnings from Algeria and is projected to be accretive to PMI’s earnings per share as of 2014.