Imperial Brands forms JV with China Tobacco
Imperial Brands teamed up with rival China Tobacco to develop a variety of growth opportunities in Asia's largest economy and overseas via a Hong Kong-based joint-venture to be named Global Horizon Ventures.
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Its focus would be on introducing Bristol-based Imperial's West and Davidoff cigarettes into China and promoting two of Yunnan Tobacco's brands, Jade and Horizon, abroad.
Hence, Jade would join Imperial's portfolio of specialist brands, alongside the likes of Cohiba and Montecristo cigars.
"The partnership has the potential to deliver additional meaningful Growth Brand volumes in the JV's first five years. Further tobacco and next generation product launches, as well as potential M&A opportunities, will also be evaluated by GHVL in due course," the company said in a statement.
Yunan Tobacco - which claims to have 20% of the Chinese market - and Imperial's track record of cooperation extended back to 2003.
Chinese smokers consume close to 2.5trn cigarettes a year, making it the largest market in the world, Imperial said.
As of 1345 GMT shares in Imperial Tobacco were 2.53% higher at 3,683.50p.