Japan Tobacco completes acquisition of Mighty Corp. assets

Japan Tobacco Inc. (JT) said Thursday it has completed the acquisition of assets related to the tobacco business of beleaguered Mighty Corp.

The announcement came days after the Philippine Competition Commission approved the transaction as it found that the buyout will not likely have anti-competitive effects in the market.

In an emailed statement, JT said the total amount of the acquired assets is P46.8 billion or nearly $1 billion or approximately $936 million.

The company announced its plan to acquire Mighty's assets on August 22. 

"The acquisition is in line with JT Group’s geographic expansion for sustainable growth," the Japanese tobacco firm said.

"It also provides a nationwide distribution network in the Philippines and strengthens the group’s brand portfolio with the addition of local brands such as 'Mighty' and 'Marvels'," it added.

The same firm said the transaction will not have any material impact on its consolidated performance for fiscal year 2017.

To recall, Mighty Corp. earlier said it intends to use the proceeds from the deal to settle its tax liabilities amounting to P25 billion, other fees, and value-added tax.

In March, the Bureau of Internal Revenue (BIR) sued Mighty before the Department of Justice for supposedly using bogus tax stamps on its cigarette packs. — BAP, GMA News