MANILA (Reuters) – The Philippine unit of Philip Morris International (PM.N) and Fortune Tobacco Corp will combine their operations in a new company in which both firms will have equal interest, the head of Philip Morris Manila said on Thursday.

Philip Morris Philippines Manufacturing Inc and Fortune Tobacco, owned by one of the country’s richest men, Lucio Tan, have a combined share of about 90 percent of the local tobacco market.

“Philip Morris and Fortune Tobacco concluded an agreement to form a new company called PMFTC,” Chris Nelson, president of Philip Morris Philippines, told reporters. ($1 = 46.29 pesos) (Reporting by Monicca Egoy; Editing by Muralikumar Anantharaman) ((rosemarie.francisco@thomsonreuters.com; +63 2 841-8937; Reuters Messaging: rosemarie.francisco.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))

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