Two tobacco companies to merge

Takoradi (Western Region) 21 Oct. '99

British American Tobacco (BAT) Ghana limited is to merge with the Meridian Tobacco Company.

The move has been approved by the shareholders.

Dr J.K. Richardson, Chairman of the Board of Directors of BAT, disclosed this at an extra-ordinary shareholders meeting at Takoradi on Wednesday.

The proposed merger would improve the profitability of the joint operation, as well as enhance market share and reduce cost of operation by eliminating unnecessary duplication of activities.

Dr Richardson said the merged company would be more efficient, benefiting from both companies tradition of excellent management.

Shareholders of the merged entity are expected to benefit from increased dividend payments which will result from the strong positive cash flows generated by the larger business, he said.

GRi../