(Telestock) – Japan Tobacco (JT), one of Japan’s major cigarette manufacturing companies, has achieved a agreement to acquire Vector Group (VGR), the fourth largest tobacco company in the United States.
JT intends to acquire 100% of the outstanding stock of VGR for a price per share of $15.00, representing a total equity transaction value estimated at approximately $2.4 billion (approximately 378 billion yen). The transaction, which is unanimously supported by the board of directors of VGR, is expected to be completed by the end of JT Group’s current fiscal year, which ends on December 31, 2024, subject to receipt of antitrust approvals and satisfaction of customary closing conditions.
After closing, VGR will be a wholly owned consolidated subsidiary of JT and will be delisted from the New York Stock Exchange.
The transaction will significantly expand JT’s presence in the United Statesthe second largest tobacco market in terms of net sales and one of the most profitable globally. It is also expected to strengthen the group’s financial position through medium- and long-term earnings and cash flows in hard currency.
“This transaction will significantly increase our presence in the United States, increasing our market share from 2.3% to approximately 8.0% and giving us full ownership of two of the top 10 U.S. cigarette brands,” said Eddy Pirard, CEO of JT International. “The transaction will also allow us to strengthen our distribution network and create medium- and long-term strategic opportunities to increase our competitiveness in this important tobacco market.”