Subsidiaries of Imperial Brands and China Tobacco have established a long-term joint venture business which will look to develop a variety of growth opportunities in China and international markets.
Global Horizon Ventures Limited is initially focused on: - leveraging the expertise of China's largest tobacco company, Yunnan Tobacco, to drive the sustainable growth of Imperial's Growth Brands West and Davidoff in China - maximising the potential of two Yunnan brands, Jade and Horizon, in markets outside of China.
As a result, Jade joins Imperial's portfolio of specialist brands.
The partnership has the potential to deliver additional meaningful growth brand volumes in the JV's first five years. Further tobacco and next generation product launches, as well as potential M&A opportunities, will also be evaluated by GHVL in due course.
Imperial Brands chief executive Alison Cooper and STMA chief commissioner Ling Cheng Xin formally endorsed the JV during a signing ceremony in Beijing.
Cooper said: "We're excited by the growth potential offered by this new business opportunity and look forward to seeing our co-operation with our Chinese partners flourish for many years to come."
GHVL, based in Hong Kong, has been jointly founded by ITL Pacific HK Limited, a subsidiary of Imperial Brands, and Yunnan Tobacco International Company Limited and Tian Li International Company Limited, both units of CNTC, the operational arm of the STMA.
At 1:04pm: (LON:IMB) Imperial Brands Plc share price was +63.5p at 3656p