Linklaters advises China Tobacco on its US$63.4m acquisition in Brazil

Linklaters advised China Tobacco International (HK) Company Limited (China Tobacco International) (HKEX: 6055) on its US$63.4m indirect acquisition, from its controlling shareholder China National Tobacco Corporation (CNTC), of a 51% stake in Brazil-based CBT.

CBT engages in the procurement, processing, sale and export of tobacco leaves and the sale of agricultural materials inherent to tobacco production. CBT was a joint venture owned by CNTC, who held a 51% stake indirectly, and Alliance One Group, a subsidiary of Pyxus International (OTC: PYYX). Through this acquisition, China Tobacco International aims to expand and diversify its businesses, which aligns with the company’s business strategy to maintain its competitiveness in the global market amongst major tobacco companies.

The Linklaters team was led by capital markets partner Iris Leung, with support from corporate partner Kevin Cheung and São Paulo-based corporate finance partner Matthew Poulter.

Partner Iris Leung commented:

“We are honoured to have had the opportunity to support China Tobacco International on this acquisition. Our involvement in this transaction consolidates the firm’s long-standing experience in the corporate/M&A space in the region as well as in assisting Chinese companies in establishing and expanding their overseas businesses.”