Two tobacco companies to merge
Two tobacco companies to merge
Accra (Greater Accra), 18th October 99
British American Tobacco and Meridian Tobacco Ghana Limited, have reached agreement on a proposed merger of their operations, a statement said in Accra on Sunday.
''The two companies expect the merger to be beneficial to the industry in Ghana as there will be significant cost savings through economies of scale and rationalisation of overlapping operational structures of leaf growing, manufacturing, marketing, sales, distribution and administration.''
The statement said the agreement is a follow-up to the successful completion of the global merger last June of their parent companies, British American Tobacco and Rothmans International.
Under the agreement, the enlarged company will bear the name British American Tobacco (BAT), Ghana.
The merger is, however, conditional on approval from shareholders and the relevant regulatory authorities.
There will, therefore, be an extra-ordinary general meeting of BAT Ghana shareholders on Wednesday, October 20, 1999, to discuss the issue.
Shareholders of Meridian Tobacco have already approved the proposal.
The statement said the enlarged company's combined brand portfolio of Rothmans King Size, State Express 555, Embassy, London, Diplomat and Tusker will enhance its competitive edge into the nest millennium.
The merger, which will positively impact on shareholders' investments, will be completed by the end of the year.
GRi