1st Jun 2015 07:07
LONDON (Alliance News) - British American Tobacco PLC on Monday said it has stuck a EUR550 million deal to acquire TDR doo and other tobacco and retail assets from Adris Grupa dd to expand its central European operations.
FTSE 100-listed BAT said TDR is the leading independent cigarette manufacturer in central Europe, with a presence in the Croatian, Serbian and Bosnian markets. BAT said that by combining its existing businesses with TDR, it expects to boost its regional leaf-processing capabilities and strengthen its relationships with distributors and retailers in central Europe.
Under the terms of the deal, BAT will maintain TDR's manufacturing facility in Kanfanar in Croatia for at least five years following the deal, which it expects to complete in October, subject to antitrust approval and Adris shareholder support being secured.
"This is an exciting acquisition for BAT, which will provide immediate scale in three core markets of Croatia, Bosnia and Serbia and establishes a sustainable platform to grow our business in Central Europe," said BAT Chief Executive Nicandro Durante.
Shares in BAT opened up 0.4% to 3,621.50 pence on Monday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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