Tobacco firm pulls out of Burma
British American Tobacco said today that it is to sell its holding in a Burma cigarette manufacturer, a move long sought by critics of the company’s involvement in the military-rule country.
BAT, the world’s second-largest tobacco company, has a £10m (€14.63m) cigarette factory in the country.
Burma, also known as Myanmar, has long been criticised by the United Nations and Western nations for its human rights record.
Michael Prideaux, BAT’s director of corporate and regulatory affairs, said in a statement in Bangkok that the decision was made in response to a British government’s request.
BAT’s Burma operation, Rothmans of Pall Mall Myanmar Pte Limited, is a manufacturing and marketing joint venture 40% owned by the Union of Myanmar Economic Holdings Ltd.
The remainder is owned by Rothmans Myanmar Holdings, a Singapore-based holding company for BAT.
Burma’s opponents often criticise foreign investors in the country, claiming their business helps extend undemocratic rule. BAT has come in for strong criticism because its partner, the Union of Myanmar Economic Holdings, is controlled by the ruling junta.
BAT said it will divest its Singapore holding company to a Singapore-based company, Distinction Investment Holdings Pte Ltd. Distinction Investment has owned 15% of the Singapore holding company since 1993. Financial details were not released.
“The agreement aims to secure local manufacturing jobs and the continued responsible marketing of British American Tobacco’s brands in Myanmar (Burma) and is conditional on the continued operation of RPMM as a going concern,” BAT said.
