Mighty Corp. Challenges PMFTC to Reveal fully its Merger or Joint Venture Agreement

The only Filipino-owned and controlled company producing low-priced cigarettes for decades, Mighty Corporation, challenged Philip Morris-Fortune Tobacco Corp. to disclose the nature of their merger.

“In particular, we challenge PMFTC to tell the public the business nature of their closely-guarded monopolistic partnership whether it was a corporate merger or Philip Morris bought Fortune Tobacco’s majority stocks in 2010,” retired judge and MC executive vice president Oscar Barrientos said.

Mighty Dares Rival to Bare Merger Terms

64% of the cigarette market was controlled by Fortune Tobacco before the merger , including the low-priced and premium brands, while Philip Morris had 30%.

Barrientos said the public should know why Fortune Tobacco, the flagship corporation of taipan Lucio Tan’s multibillion-peso conglomerates, gave up its operation and allowed itself to be dominated by Philip Morris.

“The merger is of high public interest issue requiring full transparency because it involves taxation,” Barrientos said.

PMFTC previously asked the BIR to allow the sale of 4 low-priced Marlboro brands under the its name.

Marlboro’s sales significantly decreased due to consumers transfer to low-end brands that sell at P1 per stick, particularly to Mighty Cigarette brands.

Barrientos said PMFTC has registered four P1-per-stick Marlboro brands despite of accusations that Mighty Corporation could not make a profit out Mighty's P1-per-stick cigarettes.