Japan Tobacco bought Akij's tobacco business

Japan Tobacco bought Akij's tobacco business

The Japan Tobacco Group (JT) is buying Acid Group's Tobacco business for investing around 12.5 billion taka. This is Japan's largest investment in Bangladesh, a press release said, the Bangladesh Embassy in Japan.

Japan's JT Group and Bangladesh's Akij Group signed an agreement on Monday. Under the agreement, Japan Tobacco will acquire the second largest Tobacco Company in exchange for 12,430 crore rupees.

The Bangladesh Embassy said that since last year, Japan's total investment in Bangladesh was 151.2 million US dollars last year. Through this acquisition, the Japanese group has invested approximately $ 147.6 million in Bangladesh. The Bangladesh Embassy also said that this investment is a clear reflection of the confidence of the Japanese businessmen towards the investment-friendly policies of the current government. Along with favorable business environment, the country's strong economy and skilled manpower have also attracted foreign investors.

Chairman of Akij Group SK Nasir Uddin, Akij Group's MD SK K Bashir Uddin, CFO of Akij Group Shamsuddin Ahmed, Japan Tobacco International President and CEO Eddie Perrard, Japan Tobacco International General Manager Max Lochachev, Bangladesh Investment Development Authority (ACC) Bida) Executive Chairman A



Bangladesh's cigarette market is the eighth largest in the world and 20 percent of Akij is in possession of it. Annual production of cigarette market in Bangladesh is more than 86 billion units and it is increasing by 2 percent every year. As a result, more 17 billion units were added to the total production of the jetty group. Acid is currently in second place in the value and base segment and it has presence in cigarette market in Bangladesh at 90 percent. Among the Akij brands, Navy and Sheikh are notable.

JTI president and CEO Eddie Perrard said, "Bangladesh is one of the fastest growing economies in the world and we are interested in increasing our presence in the country due to its business-friendly mentality. Akij Group's Tobacco Department is profitable, it has the latest technology production system, a strong distribution network and workforce. Together with our strong record, along with well-established portfolio, we can increase our effective skills and introduce them to some of our flagship brands as well as Akij brands.

The transaction is expected to be completed in the third quarter of the fiscal year 2018. Note that Japan Tobacco is one of the largest international organizations in the world. About 60 thousand employees in around 130 countries are operating the business.