Tabacalera acquired

| April 20, 2018

In Costa Rica, a Philip Morris subsidiary, Mendiola & Company, has acquired 100 percent of Tabacalera, according to a story in The Costa Rican Times.

The Times said the ‘merger’ would mean that 45 of the company’s [presumably Tabacalera’s] 200 employees would be laid off.

Additionally, Tabacalera would stop producing cigarettes in Costa Rica, apparently because of increases in the tax burden and the illegal trade.

The tax increases were apparently imposed in 2012.

Illegal smuggling is said to have led to revenue losses of $26 million annually.

The workers who are laid off are said to be due to receive the benefits due to them under the law as well as additional benefits, such as psychological, financial and legal counseling for 12 months. They can access help in developing CVs, interview techniques and advise on starting businesses.

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Category: Breaking News, Corporate, Markets, People

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