British American Tobacco has announced it has formally entered into an agreement to sell its Russian and Belarusian businesses, in compliance with local and international laws.
The consortium that is buying the business is led by members of BAT Russia’s management team, the tobacco firm said, and once the deal is completed, it will be known as ITMS Group.
ITMS Group will take over both the former BAT business in Russia as well as the business in neighbouring Belarus.
BAT announced back in March 2022 that the ownership of its business in Russia was 'no longer sustainable', following the country's invasion of Ukraine, and added that its intention was to sell the division.
Transfer Process
'Throughout the transfer process one of our key priorities has been the interests of our colleagues in Russia and Belarus,' BAT said in a statement. 'As part of the agreement, their employment terms will remain comparable to their existing BAT terms for at least two years post-completion.'
The tobacco group expects the deal to complete in the next month, following the signing of certain conditions. Once this has taken place, BAT will no longer have a presence in either Russia or Belarus, or receive any financial gain from sales in both of these markets, it noted.
The tobacco group remains 'confident' in delivering its full year guidance as outlined in its half year results in July.
In its half year, the group reported a 4.4% increase in revenue (+2.6% at constant currency rates), which it said was driven by a solid performance from its 'New Categories' business, which saw revenue up 26.6%.
