Japan Tobacco Inc. announced Friday it would acquire Britain's Gallaher Group PLC for 2.25 trillion yen (US$19.1 billion; ¤14.5 billion) in reportedly the largest-ever corporate acquisition by a Japanese company. JT, the world's third-largest tobacco company, was to finance its takeover of Gallaher, which owns the Benson & Hedges and Silk Cut brands, with its own cash and a Merrill Lynch loan, the company said. The takeover tops Softbank Corp.'s takeover of Vodafone Group PLC's Japanese mobile-phone operations for US$15.6 billion (euro11.8 billion) as the largest ever corporate takeover, news reports say. The purchase boosts JT's share of the European tobacco market to 23 percent from 10 percent, according to the Nihon Keizai newspaper. JT's global market share would jump 3.1 percent to about 11 percent, it said. It also highlights bolder strategies Japanese companies are taking as they seek ways to grow. Earlier this year, Nippon Sheet Glass Co. bought Pilkington PLC, a British rival that was twice its size, in a US$3.8 billion (¤2.88 billion) deal. JT shares rose 3.1 percent to 597,000 yen (US$5,068; ¤3,842) in Tokyo Friday. Shares in Gallaher, the world's fifth largest tobacco company, rose 4 pence to 11.55 pounds in London Thursday after the company said it is in discussions about a possible takeover offer, without naming the bidder, the Associated Press reported.
