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Mergers, Acquisitions, Alliances and Synergies Case Study
Case Title:
Philip Morris USA and Philip Morris International: The Spin-off Decision
Publication Year : 2008
Authors: Abdul Samad, Muthu Kumar
Industry: Tobacco
Region: US
Case Code: MAA0167
Teaching Note: Available
Structured Assignment: Available
OR
Abstract:
The world's largest tobacco giant, Altria, plans to spin off its international tobacco division, Philip Morris International (PMI) by March 2008. The company will thereby operate from its headquarters in Switzerland. The spin-off was planned because of tobacco litigations and anti-tobacco groups in US, and dwindling smoking population there. While the company is optimistic about the growth opportunities after the spin-off, health groups all over the world are concerned over the company's public health commitments.
Pedagogical Objectives:
The case study can help the students understand:
- Spin-off, its significance, merits and demerits
- Why PMI is going for a spin-off?
- The sustainability of an independent PMI.
Keywords : Philip Morris; Marlboro; Mergers,Acquisitions,Alliances Case Study; tobacco industry; Anti-smoking campaigns; Corporate image; The Altria Group; Tobacco lawsuits; Spin-off; Diversification Strategies
