Japan Tobacco CEO Signals Imperial Brands Deal Isn't Likely

Japan Tobacco Inc.’s new chief executive favors pursuing deals in Southeast Asia and markets where it lacks a presence rather than a more complex deal, signaling a much-speculated tie-up with Imperial Brands Plc is less likely.

Masamichi Terabatake, who took the helm of the world’s third-largest listed tobacco maker this month, said underdeveloped markets are more attractive than a “complicated” acquisition. He declined to comment directly on an Imperial acquisition during an interview Wednesday in Tokyo.