November 5, 2003
Philip Morris International has chosen not to submit a bid for the acquisition of Tekel, the state owned tobacco company being privatized by the Turkish government. A bid by Philip Morris International for the entire Tekel tobacco enterprise was complicated by competition issues which would require our company to dispose of at least one major Tekel brand in the event we were the successful bidder. Philip Morris International could not secure arrangements that would satisfy both competition concerns and improve its position in the market.
Philip Morris International, together with Sabanci Holdings, has successfully operated and grown its cigarette business in Turkey since the market was first opened to international tobacco manufacturers. Today, more than 30% of all cigarettes sold in Turkey are Philip Morris brands manufactured at its Izmir factory.
Turkey is an important market for Philip Morris International and will continue to be a major source of quality oriental tobacco used in the manufacture of Philip Morris brands sold in Turkey and elsewhere around the world. Philip Morris International looks forward to continued success in Turkey and to remaining an important contributor to the Turkish economy.
Philip Morris International compliments the Turkish government and its Privatization Administration for their efforts to enhance the competitive environment for cigarettes in Turkey through the privatization of Tekel. We will continue to monitor the progress of this process as it moves forward.
More Press Releases