LT Group said its joint venture with Philip Morris International (PMI) is merging with the manufacturing unit of the latter Philip Morris Manufacturing Philippines Inc.
LT Group and PMI jointly own PMFTC, 50:50.
LT Group said the merger, where PMFTC will be the surviving entity, “is part of an internal restructuring process and is not expected to materially affect the operations, earnings and ownership of PMFTC.”
PMFTC is equally owned by Philip Morris International, mother company of Philip Morris Manufacturing, and LT Group.
The merger will take effect by June 1, 2021, “subject to the approval by the Securities and Exchange Commission.”
“As a result of the merger, PMFTC’s Articles of Incorporation will be amended in accordance with the articles of merger and plan of merger,” LT Group said.
The merger may culminate the more than 10 years of separate identity between the joint venture.
On Feb. 25, 2010, the Lucio Tan-owned Fortune Tobacco Corp. and PMI signed an agreement to combine some selected assets of their operation, resulting to the incorporation of the 50-50 owned PMFTC.
The arrangement allowed Philip Morris International to retain its export business from the Philippines.