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Jakarta Post

BAT buys Bentoel to challenge Big Three market domination

  • The Jakarta Post

JAKARTA   /   Thu, June 18 2009   /  10:58 am

British American Tobacco Plc., Europe’s largest cigarette maker, has bought a majority stake in PT Bentoel Internasional Investama, the nation’s fourth-largest cigarette producer, to bolster its stake in the country’s highly lucrative cigarette market. BAT bought the stake from various shareholders, including previous majority holder Rajawali Group, a local diversified-business giant, a media statement said Wednesday.
The producer of top brands such as Dunhill, Lucky Strike, Kent and Pall Mall, BAT said Wednesday it paid US$494 million for an 85 percent stake (Rp 873 per share) in Bentoel, which has a 7 percent share of the Indonesian cigarette market.
With BAT’s local unit, PT BAT Indonesia, claiming another 2 percent of market share, the acquisition will strengthen its presence in Indonesia, which, by volume, is the world’s fifth-largest market wi...