Cyprus-based Megapolis Holdings (Overseas) Limited, which controls, according to the Russian antimonopoly agency, large Russian-based Megapolis distribution group, may acquire two large tobacco distributors in Ukraine's west region – Lviv-based West Tobacco Group LLC and Ternopil-based Podillia-Tiutiun LLC.
As Ukraine’s Antimonopoly Committee (AMC) reported on Friday, it has already given the green light for Megapolis to buy over 50% in each of the said Ukrainian companies.
West Tobacco Group LLC was set up in 2005. It is among the largest wholesale operators on the tobacco market in Ukraine’s west.Podillia-Tiutiun LLC was founded in 1999. It is a large tobacco distributor in Ternopil, Rivne, Chernivtsi, Zhytomyr, Vinnytsia, and Cherkasy regions, as well as partly in Kyiv region with an office in the town of Bila Tserkva.
Both companies have direct dealer contracts with all foreign tobacco producers with Ukrainian-based production facilities. West Tobacco Group LLC wrote in its report for 2009 that it was the largest partner of Philip Morris Ukraine and Reemtsma-Ukraine in terms of sales of their products on the Ukrainian market.
The two companies also try to develop retail trade in tobacco. In particular, West Tobacco Group LLC announced plans to expand retail trade by adding alcohol beverages and creating its own retail chain.
West Tobacco Group LLC is owned by Lviv residents Pavlo Dvulit with 80% and Serhiy Lavreniuk with 20%.
West Tobacco Group LLC January through September 2010 increased net revenues by 50.2%, to UAH 1.150 billion, and its net profit doubled to UAH 7.34 million.
Podillia-Tiutiun LLC in 2009 increased net revenues by 86.9%, to UAH 1.423 billion, and posited a UAH 4.37 million net profit, whereas it was in the red in 2008 with a net loss of UAH 470,000.
