FWD: Mexican Tobacco Expansion

[MDOLAN <mdolan@citizen.org>]

  FORWARDED MESSAGE from Ross Hammond (MARGROSS@SMTP  {margross@igc.apc.org}) 
  at 8/27/97 7:14 PM
  I thought people might be interested to know that today Philip Morris named 
  Carlos Slim to its board of directors. Slim is one of the richest, if not 
  THE richest men, in Mexico. His wealth was increased last month when 
  Cigatam
  SA, part of his conglomerate Grupo Carso, received $400 million from Philip 
  Morris in exchange for PM raising its stake in the company from 29 to 50 
  percent. In the deal, Slim also retained the right to distribute the 
  Marlboro brand until at least the year 2020.
  
  This comes against the background of fierce competition in Mexico between 
  Philip Morris and British American Tobacco (BAT). Three weeks after the PM 
  acquisition, BAT announced it would pay US$1.7 billion for Alfonso Romo's 
  Cigarera La Moderna. 
  
  ''It's a market that everybody wants to get into -- the country's in 
  economic recovery and the forecast of growth in the Mexican tobacco market 
  is very good for the next 10 years,'' according to Tim Young of SGST 
  Securities in Mexico City.
  
  Previously, foreign tobacco companies in Mexico faced numerous government 
  restrictions governing foreign investment. Under pressure from the 
  international financial institutions and commercial creditors, the 
  government liberalized its economy, culminating in the signing of the North 
  American Free Trade Agreement in 1993. Analysts predict that the companies 
  may use their newly acquired acquistions in Mexico to increase sales within 
  Mexico as well as to use it as an export platform to other countries in 
  Latin America as well as Asia. 
  
  
  Sources: "Mexico's two richest men cut back on cigarettes", Reuters August 
  4, 1997; Market Acquisitions, Bloomberg News, July 23, 1997; 
  
  
  Ross Hammond
  Consultant
  88 Norwich Street
  San Francisco, CA 94110
  USA
  tel/fax: 1-415-695-7492 (office)
  internet: margross@igc.apc.org
  ***** NOTES from MDOLAN (MDOLAN @ CITIZEN) at 8/28/97 8:40 AM
  Ross used to work at Public Citizen.
  Thanks, Ross.